The effect of special taxes on bankers\’ pay

While overall performance payments in 2010 fell 7pc to £3.4bn, salary costs increased 13pc to £8.8bn.

Barclays Capital, the investment bank where profits almost doubled to £4.78bn on revenues of £13.6bn, paid out bonuses of £2.6bn, down 12pc on last year.

Excellent news, don\’t you think?

Bankers\’ bonuses are falling and thus reducing the risks in the system as they are no longer chasing said bonuses quite as hard.

Of course, we\’ve just also increased the risks in the system by making pay less flexible but perhaps that\’s worth it.

So, we\’ll be seeing all those editorials and blog posts applauding the way in which Barclays has listened to the justifiable concerns of the people then, shall we?


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