Fortuna Search & Selection: City bonus crackdown drives candidate behaviour

Mon, 26 Jan 2009

The Treasury crackdown on the City bonus culture is affecting jobseeker’s behaviour, according to a City recruiter.

The Treasury is reported to be imposing conditions on the remuneration policies of banks which are participating in the government’s new asset protection scheme.

Nicholas Broughton, a director of Fortuna Search & Selection, told Recruiter: “Increasingly, we are seeing a shift of interest to more independent players in the advisory and trading communities where bonuses are more protected.

“There is a definite move away from large commercial banks and high public-profile financial service providers.

“There is a definite interest also in public sector opportunities. Why would you work 110 hours a week for no bonus at the end of the year?

“Those banks whose remuneration policies are likely to be affected are Lloyds TSB, Royal Bank of Scotland and Barclays.

 “There is clearly a need to question the rationale behind the bonuses received by staff at failing banks and financial institutions, specially considering the government/tax payer ownership issue at banks was being questioned.

 “There is no doubt that bonuses need be paid accordingly to long-term value add as opposed to short term annual gains.”