City bosses pay soars 21% to £237,000 a year… but manufacturing workers see pay rises fall to a paltry 2.4% Average pay in the City of London has jumped by 12 per cent to £83,000 in the last year, with managing directors enjoying a 21 per cent increase to £237,000, a new report said today. A study by recruitment firm Astbury Marsden showed that pay rose more in the first half of the year when confidence among banks was high. The biggest average pay increases were for City workers who changed jobs (up 20 per cent) or were promoted (up 15 per cent). Staff who stayed with their employer and were not promoted saw pay increase by 8 per cent.
City workers’ pay has risen significantly more than manual workers who are experiencing a rise in pay freezes City workers’ pay has risen significantly more than manual workers who are experiencing a rise in pay freezes Mark Cameron, chief operating officer at Astbury Marsden, said: ‘Pay rises in the last six months were far rarer and now City employees are expecting the impact of the eurozone crisis to produce very weak bonuses.
‘Standard practice in the banking sector when you are trying to recruit senior executives had been to buy out their current bonus and offer them a guaranteed bonus. ‘BIG DOESN’T MEAN BAD’ Sir Roger Carr, president of the Confederation of British Industry (CBI), said big business was not bad business, stressing the importance of private companies in the fight against the economic downturn. He told the annual conference of the CBI in London that the Government needed to build a mood of confidence to encourage investment from the private sector.
‘We need to encourage all those in positions of authority – government, opposition, regulators and commentators – to stop the demonisation of industry, banking, energy or defence. ‘Business large, medium and small is the engine of growth. They are interconnected, the creators of wealth, the heart of the economy. ‘If we are to fight our way out of this tough corner, business should be valued, not vilified. ‘By all means punish where appropriate, legislate or regulate where necessary, criticise the shortcomings when warranted, but base these actions on an objective assessment of the country’s long-term best interests, not short-term populism.’ ‘As the banks can no longer offer those kinds of packages because of changes to the FSA’s Remuneration Code, they are forced to attract talent by offering high base salaries.
‘The consequence of the regulatory move against City bonuses has been that banks have been left with higher fixed salary costs at a time when banking revenues have slumped. ‘With less flexibility to pare back bonuses, we are instead seeing aggressive redundancy programmes from the banks as a way of reducing costs in response to falling income.’ Average pay rises in industry have fallen back slightly in recent months to 2.4 per cent and wage freezes have started to creep up, according to new research today. A study of settlements in over 80 companies, employing almost 11,000 workers, showed the figure falling from 2.5 per cent.
The Engineering Employers Federation said its report also found that almost one in five settlements involved a pay freeze. Chief economist Lee Hopley said: ‘Whilst overall settlements are continuing to hover around normal levels, signs of pay freezes increasing could be a first sign of companies responding to the growing economic uncertainty we have seen in the last few months. ‘Attention will now turn towards the January bargaining round, where negotiations will again take place against a very cloudy outlook for the sector in the year ahead.’ John Morris, chief executive of JAM Recruitment, which helped with the research, added: ‘The current data seems to reflect an uncertainty among manufacturers. ‘Yet with many British companies competing on quality not cost, access to the most skilled and highly educated employees is one of the most important factors to staying fleet of foot.’
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In a depression and to match inflation at most, NO SALARY RAISES should be more than inflation rates. How many % growth occured in England this year? 12%? Or was it 0.1% If it was 0.1% then by a much needed law, salaries should only be raised 0.1% NOT 12%. Whats with the raises of GOVERNMENT workers during a depression when private sector is languishing? Statism is a Soviet paradigm, and raising salarioes during depression kills the manufacturing classes who can barely sell their goods because costs are already too high. To better help wealth distribution, government salaries should not be more than AVERAGE WAGE, salary raises in private sector should only be given to the lowest paid classes (later middle) with any salary raises at least equal if not LESS than the lowest paid in the country.
Then consider that the highest possible wage that ANY citizen can obtain should be no more than 30 times the average-wage of the country. (i.e – a 14K average wage means no citizen or company can give more than 420K yearly (think 401Ks for whole retirements !!! this is just 1 year . . . ) or an average of 30k+ per month to any single employee.)
This is the serious flaw of Capitalism, no asset limits (resulting in wealth sequestration), no salary scale limits (causes disparity) – both of which should be law to prevent imbalances and rioting as are occurring now, with modern Economics taught at Universities and used in Governance disregarding common sense by allowing salary raises far beyond GDP growth rates and during Economic contraction to boot – compounded by high public debt and high foreign debt at interest rates a fraction of regular loans that normal consumers manage to pay off, but an entire government somehow cannot.
The contractor/supplier collusion with politicians with limitless terms satrapy style does not help either, the Judiciary and Finance Ministries of most governments are all asleep (or colluding with with politicians) , not even noticing these problems or drafting laws as if the current Capitalist Economics is viable when already severely flawed and rife with abuses. Government Salaries should not be more than 10 times average-wage at most, with private sector salaries not more than 30 times average-wage at most (think 100 million golden paraschutes DURING economic crisis) :
No citizen should be diminished or raised unreasonably – for a better future of Economics and Governance the proposed :
1) “Income and Asset Disparity Prohibition Laws” (as discussed above)
2) $20 million Socialist limits on Capitalist systems, in maximum asset
3) Incomes no higher than 30 times average-wage ;should be applied across the world as a Human Right and Check and Balance in LAW and Society in fact.
Simply to ensure everyone has quality of life and not the 1% enjoying extreme luxury at the expense of the 99%, if not as application of experience that the system is not working given all economic data and ‘on the street’ facts to date.
Disappointing and corrupted inaction is all we still for all the salaries and perks these guys are getting ! Vote them out of the system before it’s too late (starvation, national bankruptcy, rioting/breakdown of order, subsequent militarized state – which might be dont on purpose through such neglect etc..)!