Bankers to see pay slashed

Bankers hit by the 50 per cent tax rate might want to reassess their finances amid rumours that pay packets are likely to be slashed in the months ahead.A slowdown in trading has seen US bonuses cut by up to 30 per cent, while industry insiders reckon British bankers can expect a reduction in their pay of between 20 and 50 per cent, City A.M. Reported.This flies in the face of the public view that the City is maintaining its generous pay despite wider economic troubles.Kumaran Surenthirathas, front office chief for recruiter Eximius Group, told the paper: "Bonuses and overall compensation announced to date are 25-35 per cent down on this time last year, with perhaps worse still to come. This coupled with the recent wholesale redundancies has left morale at an all time low."Tim Hedger of bank recruiter Marks Sattin backed up this view, stating that base pay had been expected to rise but it has instead remained flat, while bonuses have been hit and cuts of between 30 and 50 per cent are still to come.Such difficult conditions could prompt some bankers to reassess their finances and consider alternative accountancy techniques in order to get the most from their salary.

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