Big banker bonuses are a form of performance related pay reflective of big profits which benefits Britain as a whole, according to Dave Way, managing director of financial services recruiter Marks Sattin.

Way says: “Big financial institutions don’t run bonanzas to give away free money at bonus times. They are businesses seeking to maximise profit. The bonus – which is just another form of performance-related pay – is designed to maximise that profit.

“Although taxpaying observers may find bonus season galling, it’s in the UK’s interest for this to happen. Big bonuses mean more cash for the treasury in income tax receipts.

“Of course, a responsible approach has to be taken to remuneration for short-term, high-risk gains, but giving financial professionals an incentive to generate money has positive consequences for everyone.

“We shouldn’t forget that before 2010, remuneration for many financial professionals had been frozen for a number of years. Any company unwilling to offer competitive packages will be stripped of its talent base and will lose out in the long run. We must remember that however distasteful bonuses seem, they are a necessary part of the business-model for UK plc.”