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City bonuses 'part of business'
News Article Published:
Friday, 02 May 2008 Category:
Professional & financial services
A banking recruiter has come to the defence of City bonuses, after the Bank of England suggested they should be reduced to ease the economy.
Responding to Mervyn King's comments on the issue, John Lacey, managing director of Longbridge Search & Selection, said bonuses were a necessary component of business, which may be of interest to graduates considering a career in the financial sector.
"What does Mervyn King think he's playing at? City bonuses are totally outside of his remit as governor of the Bank of England - they're the prerogative of independent businesses.
"This is a free market and if banks are to encourage in and retain talent, they have to reward in line with other employers both in the UK and overseas," he said.
He added that banks "have a duty to their shareholders" to maximise returns and should reward their staff in the way that maximises those returns.
"I would have thought that Mervyn King has enough trouble to deal with without sticking his nose where it doesn't belong," he concluded.
