Bonuses for senior employees in the City are expected to increase by 44% in 2013, according to research by financial services recruitment firm Astbury Marsden.

It found that the average bonus for managing directors is predicted to increase to £166,955 in 2013, up from £115,618 in 2012.

This is expected to amount to 115% of their average salary, up from 88% in 2012.

The research also found that, in 2013, managing director level staff received a 29% boost to their basic pay when they moved jobs, compared to only 15% in 2012.

The research also found:

  • The average salary in the City increased by 6% in 2013 to £85,921.
  • Almost half (47%) of respondents received a pay rise in 2013, compared to 44% two years ago.
  • 67% of respondents expected their bonuses to increase or stay the same in 2013, up from 60% over the last three years.

Mark Cameron, chief operating officer at Astbury Marsden, said: “Despite pressure to keep a lid on bonuses, as the economy recovers and bank profits start to return, it’s not unreasonable that bonus expectations also rise.

“Although prospects have improved, some may find themselves disappointed this year.”