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INVESTMENT banks are moving away from offering "guaranteed" bonus packages to entice new recruits, according to a new report.

Of the 37 financial institutions surveyed by the Institute of International Finance, only five per cent of bonuses handed out in 2009 were guaranteed.

The figure represents a drop from 2008 when 10 per cent of bonuses were guaranteed and 2007 when eight per cent were of the same nature.

A guaranteed bonus promises a fixed incentive payment despite an individual's performance or the profitability of the company.

The survey indicates that the investment banking industry has almost entirely stopped handing out the controversial bonus.

Source:

http://www.cityam.com/news-and-analysis/banks-rethink-use-bonus-recruit-talent