Around 40% of City workers expect to receive an increased bonus in 2014, according to research by recruitment organisation Astbury Marsden.
Its Compensation: Life working series 2014/15, which surveyed 1,468 City workers, found that this is up from 34% that said the same in 2013. Overall, two-thirds (66%) are expecting to receive a bonus, up from 61% in 2013.
The most senior City workers expect to see their bonuses increase by 21% in 2014.
Those at managing director level are expecting 6% more compared to last year at 60% of their base salary.
When it came to pay increases, those at assistant vice president and managing director or partner level received the largest rises, with their average pay increasing by 10% from £68,139 in 2013 to £75,210 in 2014.
Associate or manager level staff had the lowest increases of just under 5%. All other levels saw increases of between 6% and 9%.
The survey also found:
- The average basic salary increased by 8% during 2014, and less than 3% of respondents received lower pay.
- 62% of respondents received a pay increase this year, compared to less than 50% in 2013.
- The increase received in recognition of promotions was 19%, a small rise on last year.
- Male respondents anticipate payments averaging £32,080 (40% of basic pay) compared to female respondents anticipating £17,429 (26% of basic pay).
- 21% of respondents are unsure about their pay prospects for the coming year.
- 50% of respondents expect to see an increase in pay next year, an increase from the 45% who expected a rise in 2014.
Adam Jackson, director at Astbury Marsden, said: “Business conditions in the City have improved significantly over the last year, which is now translating to rising bonus expectations.
“Despite shareholder and public pressure to limit bonuses and with the EU bonus cap now set to be introduced at the start of 2015, City staff clearly feel that their employers are in the position to reward them well.
“But even though conditions have improved recently, some staff may find themselves disappointed in the upcoming bonus round.”