London-based US bankers in bonus boost

City workers at US lenders are generally granted a dollar amount, paid out in sterling

Those on the lookout for new clients will be interested to know that US bankers living in London will have even more cash to spend than usual this bonus season.

The FT predicts that City workers at US lenders will be the “relative winners” as bonus pools are slashed worldwide, mainly because US banks calculate bonuses for their global workforce in dollars; London workers are generally granted a dollar amount, paid out in sterling, along with deferred shares.

As a result of sterling’s slide, a $1m cash bonus is now worth £794k, 17% more than what it would have been at the end of last year.

Stéphane Rambosson of DHR International said this “would make US banks in particular look like the more generous employers” compared to European and British counterparts paying out in euros or sterling.