Square Mile rewards savaged

THE average City bonus will be down 60% from the peak two years ago, and barely half last year's level, says a new report. But not all those in the Square Mile are gloomy.

Bob Diamond, head of Barclays Capital, is said to be collecting a £10m year-end payout, while bond market traders will enjoy a bumper bonus season.

The stock market's continued slide and the drying up of flotations and mergers have taken their toll across equities desks. The average City worker will get a top-up between 10% and 30% of their salary, a sharp fall from last year, says the report by Close Brothers' Wealth Management arm.

Investment banks are still paying out for 'star' performers - particularly the rainmakers who bring in big-spending clients.

Bond desks have profited from stock market turmoil and tumbling interest rates. The Boots pension fund is just one which has shifted its money from shares into bonds.