£ 14,000 million in bonuses in the City of London

According to a recent report[i] by the United Kingdom’s Office for National Statistics (ONS), the total bonuses paid in the financial sector and insurance came in 2010-11 to £ 14,000 million, just like the one of the year before but higher than the one paid in the period 2008-09 (£ 12,000 million).

The report reveals that the bonus payments in the financial sector still remains significantly below to the levels before the peak of the crisis, in the periods 2006-07 and 2007-08, when  £ 19,000 million were paid in total, representing over 45% of the total wages paid in the economy as a whole.

It also mentions that the economy as a whole, considered in the same financial year (April 2010 to March 2011) the bonuses totaled £ 35,000 million, also identical to the previous year.

It reports that in that year, private sector workers received average compensations of £ 1,670, a figure almost ten times higher than the one received by the public sector (£ 180), and the average annual compensation of employees in finances and insurance placed in Britain in 2010-11 at £ 12,500.

The British newspaper The Guardian analyzes that these figures can satisfy the politicians of the Conservative Party and the Liberal Democrat Party, that have demanded reductions in the compensations to appease the anger of the public against this mechanism of wage incentives that contributed to the recent banking and financial crisis.

Although it analyzes that the annual average of £12.500 that mentions the report of the ONS, that generically talks about “employees of the sector”, masks the sums that have received the executive officers of the investment bank.

The newspaper’s analysis agrees with the given report by Barclays in last March, which reveals that indeed the bankers of investments received compensations by millionaire values. In the report it is mentioned that the new chief executive officer, Bob Diamond, had received for compensation £6,5 million in 2010, over his annual wage of £250.000, and that he still could receive another compensation of others £6,5 million, by its performance for the rest of the year.

Other two officials of investments of the Barclays received £47.000 million and £44.000 million, respectively, and other 231 people of the bank received in average £2,4 million each (£554.000 million).

Although the figures published by the ONS (5,000 million pounds less than before the crisis, although 2,000 million more than in 2008-2009) can satisfy to some, the real remunerations of the executives continue being too high and they do not respond to the call of the Group of Twenty, that exactly in London two years ago protested to determine top maximums to the compensations, at the same time as to regulate such incentives.