City firms offer to buy out executive bonuses to attract high-fliers


City firms are offering to buy out the annual bonuses of top executives in a bid to attract more high-fliers, a survey by Morgan McKinley has found.


Bonuses are paid out at different times of the year by different firms, but the bonus ‘season’ usually runs from the end of December to March.


Robert Thesiger, chief executive of City recruitment firm Morgan McKinley, said financial institutions are securing the talent they need through bonus “buyouts”.


Bankers are less willing to move jobs while they wait for their bonus cheque, but might be persuaded to jump ship if a prospective employer offers to pay their bonus.


“With bonus expectations running high, individuals are less willing to move roles prior to receiving their bonus payout,” Thesiger said.


“With further expansion expected to take place in 2007, individuals at all levels will be in demand and unless companies are willing to buy out bonuses, candidates will be harder to get across the line.”


Morgan McKinley’s September survey found a 5% fall in job vacancies compared to the previous month. The average salary in the City remained stable at £51,443, a 2% increase on the previous month.

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