Results tagged “bonuses”

Ed Miliband channelled Benjamin Disraeli as he called for "one nation banking" in a speech at Canary Wharf this morning.

The Labour leader said the path the banking industry had taken in recent years would lead to a separation of society "economically, geographically, and socially" and said he would change the rules to create "a fairer society and an economy that pays its way in the world".

Barclays has announced annual pre-tax profits of £6.065billion for 2010.

The figure represents a rise of 32 per cent on the bank's £4.585billion profit the previous year. Income for the group was up eight per cent to £31.44billion, while bad loan provision was down by 30 per cent.

New EU rules came into force this month designed to limit the size of bankers' bonuses. Extra remuneration in Europe will be capped, with at least half paid in shares or contingent capital.

Also, in a bid to stop what is perceived as rewards for reckless short-term risk, up to 60 per cent of the bonus will be deferred for at least three years.

Bob Diamond, chief executive of Wharf bank Barclays, faced a grilling by members of the Treasury Select Committee on Tuesday, where he was questioned for more than two hours on issues including bonuses.

He refused to make promises to forgo his own bonus, which could be in the region of £8million.

HSBC has reiterated its commitment to staying in Canary Wharf after revealing a jump in underlying profits last year.

The bank made a pre-tax profit of $13.3billion for 2009, an increase of 56 per cent on the previous year, but its reported profit before tax fell by 24 per cent to $7.1billion due to losses in its American operations.

Barclays recorded a big jump in profits last year despite the recession.

The bank posted a year-end profit of £11.6billion before tax, an increase of 92 per cent on its 2008 figure. Most of that came from the £6.3billion sale of Barclays Global Investors and a strong performance from investment arm Barclays Capital.

Credit Suisse enjoyed a productive 2009, making a profit of 6.7billion Swiss francs last year.

The bank, which has its UK headquarters in Canary Wharf, has bounced back from a poor 2008, largely due to the strength of its private banking business and adopting a safer business model.

Chancellor of the Exchequer Alistair Darling was in Canary Wharf this morning and used the opportunity to criticize the return of the bonus culture.

Mr Darling singled out Goldman Sachs, which reported bumper profits last week, saying it sent out the "wrong signals" with huge pay awards.

Credit Suisse is to up the basic salaries of around 15 per cent of its staff to make up for limits on bonuses.

Around 7,000 workers at the bank, which has its British headquarters in Cabot Square, will see the change to their compensation packages come into effect from January.

Confidence is returning to the financial recruitment to sector according to one of the industry's leading companies.

Despite bad news on national unemployment figures, put at 2.38million last week, financial recruitment specialists Joslin Rowe is now seeing that trend being bucked in the banking sector.

The Financial Services Authority has defended its performance last year in its newly published annual report.

The Canary Wharf-based financial regulator endured a torrid time in 2008 with the onset of recession and the near-collapse of the banking system.

With big bonuses beyond the scope of many businesses in the current economic climate it could be time to look at different ways to reward hard-working staff.

One company leading the way in thinking up new ways of performance reward is professional services giant KPMG.

Staff at Canary Wharf's Waitrose store will receive bonuses of 13 per cent of their annual salaries this year.

Parent company the John Lewis Partnership will pay out £125million to staff this year, as the sale of Ocado offset a 26.4 per cent drop in pre-tax profit.

THE BONUS culture should be curbed according to the boss of HSBC.

The bank's chairman Stephen Green has thrown his weight behind the Financial Services Authority's campaign to stop the rewarding of short term gains.

Mr Green said: "There is now a growing demand, even within the industry, let alone beyond it, for an approach to compensation which is more responsible."

SHOULD the Government step in to cap executive pay at British companies?

Many London businesses say no - but they're keen to see the bosses earn their money.