City bonuses soar despite concerns about ‘credit crunch’

Despite the prevailing economic gloom, almost four in 10 City workers received a higher bonus this year than in 2007, a survey has revealed.

Research by recruitment firm Morgan McKinley found that 37% of financial services staff scored higher payouts in 2008, while a further 43% received a similar amount to last year. Seven in 10 employees said their bonus matched or exceeded their expectations.

The results showed that the credit crunch had not bitten too sharply across the UK’s money markets.

Robert Thesiger, chief executive of Morgan McKinley’s parent company Imprint, said: “Following a record bonus round in 2006-07, speculation surrounding this year’s bonuses was enormous.

“However, putting the impact of the credit crunch aside, 2007 was a strong year for financial services. For the majority, bonus payouts in middle and back office functions appear to reflect this.”