Compensation specialists suggest that most increases will be in cash, with the stock component of pay remaining stable.
The Lord Mayor, who defends bonuses as a "very sensible component" of pay, has also invited Dame Clara Furse, the former chief executive of the London Stock Exchange and a key player at TheCityUK, set up to bolster the industry's battered image.
In contrast, the performance-based component of pay, i.e., bonus, is important to induce a high effort level from workers in the current period, which implies a high bonus during booms.
We've heard from your feedback on Googlegeist and other surveys that salary is more important to you than any other component of pay (i.e., bonus and equity).
The stock component of pay packages rose 17% to $4.5 million.
However, the role that the performance-based incentive (PBI) component played was less clear--PBI formed a relatively small component of pay, and did not increase in line with outputs.
At the same time, the role that the PBI component played was less clear--PBI formed a relatively small component of pay, and did not increase in line with outputs.
Goldman also increased its reported profit for the year by making stock options a bigger component of employees' pay packages, said David Viniar, the firm's chief financial officer.
Those extras, which bring in several dollars each month per customer, cost the company virtually nothing to provide, compared with the huge cost of maintaining telephone poles, lines, switches and other components of the telephone infrastructure, and of paying its 19,000 operators, linemen, managers and other employees.
Europe's top banking regulator has cast doubt on the use of such top-ups, concluding they should be counted as variable components of pay and hence risked breaching the new rules.
