Study shows bank bonuses shrink but basic salaries on the rise

A new study out this week has shows that although City bonuses have nosedived by around 8% in the last 12 months, workers managed to swerve the windfall after being awarded a 7% rise in basic salaries. Research from the Centre for Economics and Business Research reveals that although bonuses fell from £7.3 billion to £6.7 billion in the last financial year, basic salaries in the Square Mile jumped by 7% during the same period. And while bonuses fell during the financial year of 2010-2011, they still remain higher than the levels recorded for 2009.

Bob Diamond to become next chief executive of Barclays bank at a salary of £1.35 million

The current head of the investment arm of Barclays bank, Bob Diamond, is to be become the chief executive of the whole firm, earning a whopping annual salary of £1.35 million. However, bonus payments and other long term incentives could top up his yearly income to £11.5 million a year. The American banker will replace John Varley next year but experts are warning that his salary figure could lead to controversy. Robert Peston, BBC business editor, said: "At a time when the economy remains weak, this package is likely to spark widespread criticism". Nevertheless, Mr Peston agreed with the choice to appoint Mr Diamond ...