how does yours measure up?

Unlock Editor’s Digest for free

Roula Khalaf, editor of the FT, picks her favorite stories in this weekly newsletter.

Bonus season promises even greater fortunes for City workers this year after UK and US banks scrapped EU-imposed bonus caps — but how will yours measure up?

With M&A activity on the rise, some UK-based bankers and lawyers are upbeat about their salary and bonus prospects for this year and beyond. However, increased payout ratios may come at the cost of lower base salaries, further concentrating rewards in the hands of top traders.

For the fourth year running, the Financial Times is asking readers to confidentially share their expectations for the bonus round; how they noticed the changes in the salary policy and whether they intend to invest, save or spend the money allocated to them.

This year’s results are expected to be the first year in which bonus cap changes will be fully reflected in the pay packets of top earners. Although the cap is lifted in 2023, UK-based banks have taken time to review and fully implement their pay policies, presenting a mixed landscape.

While European banks in London still have to limit bonuses to twice the basic salary, Barclays and JPMorgan have decided to reward the so-called bearers of material risk up to 10 times their fixed salary, while Goldman Sachs decided to reduce the base salary but increase the bonus ratio to 25 times.

The legal profession is expected to be the second big winner this bonus season, as the arrival of major US law firms in the capital disrupts the market, encouraging pay for talent wars.

Readers will be able to tell us anonymously how the changes will affect their personal salary prospects, as well as changing competitive dynamics in the wider employment market.

The survey also gives readers the chance to say how Labour’s first budget has affected their financial planning, from cost payment of VAT on school fees as suggested changes in inheritance tax make retirement savings less attractive.

Last year The FT’s bonus research found that many well-paid professionals were being squeezed by a combination of smaller payouts and higher interest rates.

Filled in by almost 3,000 FT readers, 58 per cent said their bonus had fallen or decreased compared to the previous year, a sharp jump [64 per cent] in the number of people who said they intended to use their bonus to reduce their mortgage debt. However, half of respondents still intend to invest the bulk of any bonus payment tax-efficiently.

Changes to bankers’ bonus caps were underway at the time of last year’s survey, but four out of five FT readers said they would prefer security to glory, preferring high basic pay and limited bonus to low basic pay and unlimited bonus .

The results of the anonymous survey will be collected and published in the coming weeks. Please ensure your reply reaches us by Monday 10th February and direct all inquiries to our usual email address, money@ft.com.