Socialist Worker

Fat cat bonus or 110 hospitals?

Issue No. 2025

While public services are cut, City bankers are setting even higher records for their bonuses.

Some 4,200 City executives will grab bonuses worth more than £1 million each this year, research by a leading think-tank says.

The new figures from the Centre for Economics and Business Research (CEBR) zero in on a narrower group than the fat cats across City businesses who will net £19-21 billion bonuses this year.

The latest research says the total finance companies’ bonus pool will be a staggering £8.8 billion this year shared, between the City’s 335,000 workers from bankers to traders.

On average, this means every worker will get about £26,300, equal to the average worker’s salary for a whole year.

In reality, the CEBR said some people will get tens of millions of pounds while many will get a paltry sum, or nothing at all.

The bonus pool of £8.8 billion would be enough money to build about 110 new NHS hospitals, or pay 440,000 newly qualified teachers’ salaries for a year.

The executives’ greed is stoking house price rises, particularly in London and the Home Counties.

They can afford to buy one, two or even more homes, often without taking out a mortgage, inflating the general price level.

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Sat 4 Nov 2006, 00:00 GMT
Issue No. 2025
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