City traders see 'bonuses slide'

City bonuses have dropped significantly following the credit crunch, a new survey has revealed.

Traders in the City of London will see their bonuses and paycheques dip by around 40% this year, research by Napier Scott Executive Search has revealed.

Shaun Springer, the Napier Chief Executive, noted that not all areas of the finance sector have been affected by the pay cuts.

'The biggest falls in the UK occurred in the debt and credit markets,' he stated.

For example, the research found that managing directors in these sectors have seen their yearly earnings drop £290,000 to £685,000 in 2008.

However, London's traders have not been hit as badly by the credit crunch as their counterparts in New York.

Napier predicts that Wall Street traders will see bonuses plummet by 60% in the current economic climate.

The Confederation of British Industry and PricewaterhouseCoopers yesterday warned that two-thirds of finance businesses are expecting to make further job cuts this year.