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A survey carried out by the Securities & Investment Institute (SII) has highlighted opposition to employees below executive level at taxpayer-funded banks receiving bonuses.
In response to an online poll asking whether lower ranked staff at state supported financial institutions should get any payment above and beyond their basic salary, 58 per cent said ‘no’ and 42 per cent ‘yes’. People taking part in the survey were asked to leave comments and among those against bonus payments were:
‘Bonuses should not be paid in any nationalised or part nationalised bank until they have paid back the Government's money’
‘Effectively these organisations would have gone bust without state intervention and it isn't ethical to pay bonuses to staff in these circumstances. I have difficulty, either, in seeing why executives should receive a bonus.”
‘It does not engender confidence in the financial system when bonuses are paid out of the public coffers. How the sector is viewed is crucial to encouraging growth back into the economy.”
But there was also some strong feedback on why staff should get some extra remuneration.
Comments included:
>b>“Staff have worked hard and most are not involved in the high risk parts of the bank. Why should a cashier in a branch earning £13,000 a year not get a bonus if they have performed well?”
“Hardwork should be rewarded. If I were in the position of an employee at one of the banks and had a family and children's education as main drivers to achieve my targets then I absolutely deserve the right to earn a bonus. The key is that bonuses are EARNED.”
“If you ban these bonuses then what about the civil servants in the Treasury who receive bonus payments but work for a department that has failed as well
“There are many who have not contributed to the bank's losses and deserve an incentive to help pull their employer out of the mess a few of their colleagues created.”
The results have been published in a week in which some politicians have been calling for a £2,000 cap on payouts to staff at taxpayer-supported banks.
The SII led the way in the financial services sector by publishing a policy paper last October to contribute to the debate over remuneration within the industry. It sets out ten core principles on pay.
Simon Culhane FSI, SII chief executive said: “Excessive greed has played a part in the industry’s financial problems. We need to move away from a casino mentality and ensure that all the long-term stakeholders are treated fairly. We strongly support the concept of people paying a bonus for achievement over and above what is expected but it needs to be more transparent and reflect the longer-term value that the individual adds to the business.”
The online poll is still being conducted. To take part and leave your own comment visit: www.sii.org.uk.
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