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Despite Proposed Pay Caps, London Bankers Expect 44% Bonus Increase

Tyler Durden's picture


The European Union's February decision to outlaw banker bonuses that are more than twice fixed pay was an effort to curb excessive payouts and asymmetric risk-taking. The UK challenged the caps as illegal in September (and the case has yet to be decided) but the European Banking Authority softened its stance last week by allowing banks to exempt staff earning up to EUR 1 million from the rules that cap bonuses. It seems the bankers are making hay while the sun shines as Bloomberg now reports, Managing Directors at banks in London are expecting a 44% rise in bonuses for 2013 - to more than double their average salary.



Via Bloomberg,

Managing directors at banks in London are expecting a 44 percent rise in bonuses for 2013 even as European authorities seek to scale back compensation, according to a recruiter’s survey.


The average bonus for managing directors may increase to 166,955 pounds ($271,686) from 115,618 pounds a year earlier, Astbury Marsden said in an e-mailed statement. That’s more than double their average salary, up from 88 percent in 2012, the recruitment firm 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,” Mark Cameron, chief operating officer at Astbury Marsden in London, said in the statement. “Although prospects have improved, some may find themselves disappointed this year.”


The European Union brokered a deal in February to outlaw banker bonuses that are more than twice fixed pay, a move lawmakers said would prevent excessive payouts and curb risk-taking. The U.K. in September challenged the caps as illegal at the EU’s highest court in a case that has yet to be decided.


The European Banking Authority softened its stance on bonuses somewhat, stating on Dec. 13 that banks will be able to ask national regulators to exempt staff earning as much as 1 million euros ($1.4 million) from rules that cap bonuses at twice fixed pay.




Britain was home to 2,188 investment bankers earning more than 1 million euros in 2012, the largest share in the EU, while Spain had 37, the London-based EBA, set up in 2011 to harmonize banking rules in the EU, said in a survey last month. France and Germany had 117 and 100, respectively.

It truly seems like we learned nothing from 2008 - though, given the even larger central bank put, the asymmetric return from risk-taking is now even larger... "the music is playing so keep dancing" appears to be the meme once again


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Mon, 12/16/2013 - 20:10 | Link to Comment 90's Child
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Mon, 12/16/2013 - 20:21 | Link to Comment krispkritter
krispkritter's picture

"bank profits start to return". I think that should read " bank theft starts to skyrocket...".  I guess all the LI(e)BOR bizness was just a minor kerfluffle?

Mon, 12/16/2013 - 20:20 | Link to Comment El Vaquero
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Fantastic word.  I'll have to include it in my vocabulary. 

Mon, 12/16/2013 - 20:30 | Link to Comment CCanuck
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I think in this context, it translates to Muppet-Fuck


Mon, 12/16/2013 - 20:33 | Link to Comment krispkritter
krispkritter's picture

What's green and smells like pork?


Kermit's dick...

Mon, 12/16/2013 - 20:46 | Link to Comment CCanuck
CCanuck's picture

Nice, I got one for ya.

What is Gold(man) and smells like Kermit??

Mon, 12/16/2013 - 21:02 | Link to Comment Papasmurf
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Mon, 12/16/2013 - 20:30 | Link to Comment Anusocracy
Anusocracy's picture

Ninety-nine percent of the people want government.

Government organizes society to benefit the few at the expense of the many.

Ninety-nine percent of the people are really, really stupid.

Mon, 12/16/2013 - 21:43 | Link to Comment stocktivity
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I can't even comment on these bastards anymore...I get so fucking pissed!!!

Tue, 12/17/2013 - 07:48 | Link to Comment Nothing but the...
Nothing but the truth.'s picture

The world needs to rid itself of this scourge of bankers. They are self enriching , thieving scumbags that are no longer fit for their original purpose. Blood sucking fucking Leeches.

Mon, 12/16/2013 - 20:14 | Link to Comment vmromk
vmromk's picture

Death to ALL bankers, especially the Federal Reserve.

There is no greater parasitic vermin upon the American people, than the SCUMBAG CRIMINALS running the Federal Reserve.

Mon, 12/16/2013 - 20:19 | Link to Comment alfred b.
alfred b.'s picture


.....and to their corrupt political enablers!


Mon, 12/16/2013 - 20:22 | Link to Comment booboo
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Easy going there Festus, we should give em a trial first.................. then hang em.

Mon, 12/16/2013 - 20:38 | Link to Comment CCanuck
CCanuck's picture

Ya...try-all of bullets, then try-all guillotines, then try-all spiked clubs, swords, flame-throwers, etc. I am all for try-alls.


After the try-alls we can celebrate with a hang'n.

Mon, 12/16/2013 - 20:14 | Link to Comment Bunga Bunga
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EBA is simply a bankster lobby. That's why they also warned of bitcoin.

Mon, 12/16/2013 - 20:15 | Link to Comment pragmatic hobo
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one for you ... one for me ... two for you ... one, two for me ...

Mon, 12/16/2013 - 20:15 | Link to Comment Goldilocks
Goldilocks's picture

Over the Rainbow - What a Wonderful World - HD - Legendado (5:06)

Mon, 12/16/2013 - 20:15 | Link to Comment Al Huxley
Al Huxley's picture

If there was some way to go long on 'investment bankers self-serving, self-congratulatory, pocket-lining, fuck-the-society-we-live-in hubris', that would be a guaranteed, never drop investment.  These fuckers are really lucky they live in such a fucked-up, clueless society.  They'll probably be able to grind the middle class into the dirt so gradually they'll never notice, and the ones who do will take it out on the not-quite-yet impoverished while these cocksuckers hop in their private limos off to private estates that the plebs don't even know exist.  Fun times, fun fucking times.

Tue, 12/17/2013 - 04:07 | Link to Comment Oldwood
Oldwood's picture

Wouldn't it be easier to just actually make corruption illegal and enforce it, rather than just passing a law to limit their take? But of course they can't do that because they can't afford to see the unemployment rise to that level. TBTF has many facets, no?

Mon, 12/16/2013 - 20:16 | Link to Comment krispkritter
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44% more rope, 44% more 'anticipation'...meanwhile the place is going to be invaded by the Eastern EU after Jan 1, looking for a bunch of benefits and finding out there is no such thing as a 'trickle down' from the rich. 

Mon, 12/16/2013 - 20:27 | Link to Comment CCanuck
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Kritter, there is trickle-down, just not in the monetary sense.

I am reminded of some saying about the direction shit travels.

Bankers & Lawyers, the controlling parasite cocksuckers of our time.

Fuck them in thier trickle down asses with a Ball & Chain


Mon, 12/16/2013 - 21:07 | Link to Comment krispkritter
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Waiting for the riots.  Think of what the UK looks like when every douchenozzle in a $1M sportscar starts getting rammed by out-of-work guys driving $500 cars, or they start getting torched in their driveways, or stopped in traffic by a mob and beaten into crumpled composite Dali sculptures.  France or the UK, one is going to pop soon I think, making Greece and Italy look like loafers.  

Mon, 12/16/2013 - 20:20 | Link to Comment Major Major Major
Major Major Major's picture

...average banker pay has been reduced from $188,145 to $271,686 this year.


In other news, your team won and the lottery is bigger than ever.

Mon, 12/16/2013 - 20:22 | Link to Comment Kaiser Sousa
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Mon, 12/16/2013 - 20:20 | Link to Comment CCanuck
CCanuck's picture

Dirty Fuck'n Cocksuckerrrrrs!

Mon, 12/16/2013 - 20:42 | Link to Comment falak pema
falak pema's picture

free enterprise at its best; I'm sure the Von Mises Institute is happy; entrepreneurs getting paid and the perpetual machine saving the world. 

As a MAd fold-in that has me beat!

Nobody has offered me a 40 bonus.

So WHY the upshot of taxing the superich at 71% here at ZH? Even IMF is now panicking...bubbbbbble!!!

Can't have it both ways. 200 000 people own 90% of the 30T private wealth and its growing by the year.

Von Mises is NEVER miserly with the rich. 

Tue, 12/17/2013 - 04:32 | Link to Comment Oldwood
Oldwood's picture

I know it is a difficult concept but not all rich people stole it. Liberals see productive labor as a ugly resource to be tapped or harvested and put no distinction between stolen and earned wealth. It is a neccessary evil to used to advance thier utopian vision of pure socialism where we all voluntarily work for the advancement of the collective and lose all taste for greed. Incentivizing criminal behavior is as justifiable if not more so than doing the same for small business and normal working folk. The ends justify the means and those criminals are far more beholden to the state than are sheeple who understand the state is our enemy. We all see the rampant corruption and criminality at work here so why do we want to tax it instead of eliminate it? Our government has constructed a massive law enforcement system that spans internationally yet only enforces the law on the little people. All others are simply fined or assessed an excess theft tax. We want and need a system that rewards productivity and innovation and hard work, and taxing it is the wrong thing to do. We should be enforcing basic laws, many that have been in place for hundreds of years, rather than relying on a "progressive" taxing system that actually puts the criminals ahead of the truly hardworking and productive amongst us.

Mon, 12/16/2013 - 20:23 | Link to Comment nasa
nasa's picture

They deserve it.  God's work is tough.   

Mon, 12/16/2013 - 20:26 | Link to Comment buzzsaw99
buzzsaw99's picture

bank profits = looting the company loan loss reserves to pay bonuses

Mon, 12/16/2013 - 20:26 | Link to Comment Snoopy the Economist
Snoopy the Economist's picture

Can we roll out the guillotines now?

Mon, 12/16/2013 - 20:27 | Link to Comment Snoopy the Economist
Snoopy the Economist's picture

If they don't continuously make more each year how can they keep up with the inflation they create?

Mon, 12/16/2013 - 20:29 | Link to Comment chump666
chump666's picture

Charles Dickens must be laughing his ass off.

Nothing changed hahahahahahahaahah


Mon, 12/16/2013 - 20:29 | Link to Comment Oldwood
Oldwood's picture

I honestly don't think the bankers give a fuck WHAT we think! The entitlement attitude isn't just at the bottom of the income scale. Those at the top have balls of gold and believe they earned every fucking dime they have stolen.

Mon, 12/16/2013 - 20:53 | Link to Comment LawyerScum
LawyerScum's picture

they are just straight up megalomaniacs/psychopaths...they get off by stepping on the plebs and stealing not only living people's money but the money of unborn children as well. Their twisted monkey brains emit copious amounts of endorphins every time they fuck us over.

Mon, 12/16/2013 - 21:43 | Link to Comment lotsoffun
lotsoffun's picture

jamie is smarter than you, and lloyd is doing god's work.  haha.  just joking.  no - they told you what they think.  they know what they are doing.


Mon, 12/16/2013 - 21:42 | Link to Comment lotsoffun
lotsoffun's picture

oldwood - i like your comments.  i don't think you are a wall street guy however.  i am.  and they don't think they deserve it.  they know exactly what they are doing.  they are bullys and stealing and they know it.  and until we stop them, they will continue.  poor bernake.  stupid fucking princeton academic.  so stupid, he thought he was actually going to show everybody what smart little educated savvy j-guy he was.  he ended up their little bitch.  he was a carpet.  he knows exactly how badly he fucked up.  they walk on us until we stand up to them.

greenspan was different.  he knew he was their bitch.  but, he loved the publicity.  another j-guy, probably wanted to be an actor, and got to be one on a huge stage.


Tue, 12/17/2013 - 04:50 | Link to Comment Oldwood
Oldwood's picture

I have no part of wall street. I have had a small high end custom furniture shop for 27 years and have watched it slowly melt away over the lastfour years. I'm sorry but I hold much contempt for people working with the investment industry. I know I'm likely over generalizing but I see it as a scam that plays on people's greed, their desire to earn money for no work. I'm a working guy. At 60 I'm still toting wood and furniture and breathing lacquer fumes. I don't have much patience for those hardworking souls wearing nice suits looking down their noses at people who have soiled and smelly clothing from working their asses off all day. I have men almost my age that are tops in their trade yet have no path to advancement. They will work until they can't, meanwhile illegals press ever harder on their wages. The president of one of the largest oil companies in the world sets at one of my desks, but now we find in their latest expansion they are buying furniture from China. It is bad enough that corporations running the world have little compunction about bleeding us dry, but if even they, with pockets of OUR money will not buy American, we are all fucked. Its sad enough that the actual American workers do not realize that buying imports will ultimately eliminate their jobs, even yours..

Tue, 12/17/2013 - 20:43 | Link to Comment lotsoffun
lotsoffun's picture

oldwood - i agree completely.  i attempt (not always possible) to do business with shops that have only one cash register.  i want to deal with 'owners'.  i've never been in a walmart.  probably never will.  and - they already have given my job away.  i currently work in an international bank on wall street, my boss is british and has 20 new york employees, and only 2 of us were born here.  of course - half the rest are now 'american citizens' (having gotten an h1b visa and birthing) so - if i say anything about only 10% of us are americans, i'm racist.  and that's the agenda.  we're finished.  but lloyd and jamie aren't finished yet, because whatever they can't offshore - they bring in from foreign lands.  and i also have no future, i'm 50 something and my pay keeps going down, i'm lucky to have a job, especially because (i hope this is obvious) i don't 'manage up well'.  or, kiss ass.  and i'm very vocal about the fact that i'd rather hire YOU at any age and train you, then pay $150,000/year to some fucking idiot from india (yes, that's what the contracting company that sends them makes, they then turn around and slice off 50%).  i'm not sure middle america really understands how rotten the banking system is with all this.



Mon, 12/16/2013 - 20:57 | Link to Comment Dr. Destructo
Dr. Destructo's picture

Yeah but the whole idea behind A Christmas Carol is that Scrooge turns around and starts giving his wealth with a repentant heart. However the reality behind today's "Scrooges" is they buy safe havens overseas just in case the commoners rebel against them.

This cartoon kind of loses it's impact of the intended message as a result of that reality.

Mon, 12/16/2013 - 21:33 | Link to Comment J S Bach
J S Bach's picture

We live in such a surreal world.  It's almost like I'm reading a history book about the days preceeding the Fall of the Roman Empire or the diabolism of the Medici clan.


Alas, all of this will continue until we "plebs" say "Enough"!  It is imperative that WE set up the next monetary system - one based on ANYTHING but debt.  This noble cause is worth fighting AND dying for.

Tue, 12/17/2013 - 01:01 | Link to Comment One of We
One of We's picture

...worth fighting and killing for.....has a better ring to it.....


Heaven forbid we bitch about bonuses for these clowns.  Its not like just anyone can put their feet up on a desk and cram hot fiat into an algo.....

Mon, 12/16/2013 - 22:38 | Link to Comment centerline
centerline's picture

History suggests that heads will roll soon.  Literally.

Tue, 12/17/2013 - 01:52 | Link to Comment Colonel Klink
Colonel Klink's picture

Fuckin wanker bankers.  Can't wait to see them swing.

Tue, 12/17/2013 - 03:40 | Link to Comment no more banksters
no more banksters's picture

" ... government officials and systemic journalists, are playing very well their roles, by pointing the finger at bankers who do not care to provide loans from all this liquidity they receive to stimulate the real economy. Besides, Barack Obama did the same, when in the peak of the crisis, higher bank executives and golden boys, defiantly shared nearly 20 billions in bonuses from the bailout packages."

Tue, 12/17/2013 - 04:13 | Link to Comment Ghordius
Ghordius's picture

this is a wonderful example about how the UK interacts with the EU

the EU Parliament was bugging the Council for a long time to "do something" about this. Continental Europeans still see banking as facility. And as you can see, very little "investment bankers", here

So the Council (which is - small reminder - the meeting of the governments of the member countries) had this EU law drafted through the Commission (the only and standard procedure of the EU) and the EU Parliament voted "yeah, too much is too much". not the smartest law, but a simple law nevertheless, and a simple message

now the usual narrative on Glorious Island is that the bad, bad EU forces poor, helpless Britain to conform to stupid EU rules, laws and regulations

yet what they forget to tell in the anti-EU and anti-EUR British media is that the EU has no police. and of course no army. and if a country does not want (read, if the elites of...), it won't comply

already Barclay's was touting two months ago that a special "cash allowance" would do the trick of bypassing this law. Cameron and his cabinet are of course friends of the investment bankers, and so for once they do take their role as goalkeeper vs. the EU seriously

of course europeans could go further and unilaterally bring back something like Glass-Steagall in force. yet would the investment bank world comply to that? of course not. the full panophly of British politics would stand behind British, pardon, City of London interests

of course 30% to 40% of Britons are core EUroskeptics and will cheer for Cameron defending banker's limitless bonuses, just on the principle that the push came from the EU. Which, as reminder, it means that both a majority of (recallable) european governments and a majority of the elected EU parliament was behind it

yet it would be nice of them if they would wake up and smell the coffee: why can't Downing Street and Westminster do the same with all the other EU rules which chafe in Britain? instead of posing as the helpless?

blame Brussels, and the conservative Briton's mind is occupied. and who knows, perhaps our American Cousins wake up and reinstate Glass-Steagall, cutting this knot for divided Europe

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