The numbers have been crunched and there’s good news and less good news.

The good news is you’re getting a bonus. The less good news is you don’t get to keep it.

The highest paid bankers and traders in the UK and Europe who receive a bonus of £1m this year could end up receiving no money at all after tax in 2011 – and may face a tax bill that is bigger than the upfront cash part of their bonus – under current European proposals to reform remuneration. Calculations by Financial News based on the latest bonus proposals by the Committee of European Banking Supervisors show that anyone in the UK – or working for a UK bank anywhere in the world – who receives a £1m bonus would receive a maximum of £200,000 in cash upfront.

Of this, £100,000 would be payable in income tax and, depending on the nature and structure of the award, another £100,000 could be payable in tax immediately. Including national insurance, or higher marginal tax rates in some European countries, the upfront tax liability could be more than the upfront bonus.

Bonuses Go Up In Smoke [eF]

Comments (43)

  1. Posted by Ghost of Alistair Darling | November 15, 2010 at 4:49 PM

    All your bonus are belong to us

  2. Posted by Ho | November 15, 2010 at 4:49 PM

    awesoe, fucking obama

  3. Posted by Guest | November 15, 2010 at 4:50 PM

    We do not anticipate that this will have any impact on employee performance in future years.

    – AIG Quant

  4. Posted by ExtraOrdinaryPopularDelusions | November 15, 2010 at 4:52 PM

    You can’t have any pudding if you don’t eat your meat.

  5. Posted by Tax and spend | November 15, 2010 at 4:55 PM

    “Committee of European Banking Supervisors show that anyone in the UK – or working for a UK bank anywhere in the world”

    Serious question: can a banker working for Barclay’s, RBS, etc. in the U.S. (or any other country for that matter) really be subject to UK tax law, when you’re not filing in the UK? They must mean UK citizens working for a UK bank anywhere in the world, right?

  6. Posted by Logic | November 15, 2010 at 4:55 PM

    Yeah, I forgot Obama was the chairman of the Committee of European Banking Supervisors. Fucking idiot.

  7. Posted by guest | November 15, 2010 at 4:56 PM

    to the person lacking reading comprehension skills, the above article says this is happening in the UK.

    don’t know if the pound instead of dollar symbols tipped you off to that.

  8. Posted by Anonymous | November 15, 2010 at 4:57 PM

    I hope you burn for your stupidity.

  9. Posted by One World | November 15, 2010 at 4:59 PM

    What about other financial services companies? Do insurance companies or asset managers get hit with this too?

  10. Posted by Ho | November 15, 2010 at 5:03 PM

    Prager is nucking futs

  11. Posted by Ho | November 15, 2010 at 5:04 PM

    Bess you clearly haven’t seen the vision:http://www.youtube.com/watch?v=qv9VDSIm_Oo

  12. Posted by Diesel7 | November 15, 2010 at 5:05 PM

    I have an interview at GS today, can anyone offer advice?

  13. Posted by tranche monkey | November 15, 2010 at 5:09 PM

    and thus starts a new immigration problem of euro bankers to the U.S.

  14. Posted by ExtraOrdinaryPopularDelusions | November 15, 2010 at 5:17 PM

    I do believe he’s being facetious.

  15. Posted by Guest | November 15, 2010 at 5:24 PM

    Due to lack of correlation I suppose.

  16. Posted by Mudslinger | November 15, 2010 at 5:24 PM

    Hey, didn’t you review the GS recruitment video !!! Bess tries to help you out
    and do you ever listen? You have Nooooo chance, loser.

  17. Posted by James Madison | November 15, 2010 at 5:30 PM

    Then do your part by voting his @$$ out in 2012. And call out all your buddies who voted for the @$$hole.

  18. Posted by Diesel7 | November 15, 2010 at 5:32 PM

    Hey mudslinger, theres only so much you can learn from a video you tool.

  19. Posted by Nobody | November 15, 2010 at 5:34 PM

    Well played

  20. Posted by LongNWrong | November 15, 2010 at 5:38 PM

    You are watching the wrong videos, son.

    J. Gundlach

  21. Posted by Pfluger the Barbarian | November 15, 2010 at 5:53 PM

    It was the best of times, it was the worst of times, it was the age of wisdom, it was the age of foolishness….

  22. Posted by Duh | November 15, 2010 at 5:58 PM

    That burning smell is your sarcasm detector.

  23. Posted by One World | November 15, 2010 at 6:00 PM

    More like a wave of bankers to Switzerland

  24. Posted by Homosaurus | November 15, 2010 at 6:03 PM

    Wow. You have to be the biggest weenbag on the planet. Go hang yourself troll.

  25. Posted by Hamilton | November 15, 2010 at 6:03 PM

    We don’t understand why there has been a dramatic drop in UK-based bankers, and a surprising, equally large rise in Tortola-based consultants temporarily employed, 365 days a year by investment banks.

    - HM Treasury

  26. Posted by Homosaurus | November 15, 2010 at 6:06 PM

    Meet me at Minetta….

  27. Posted by Homosaurus | November 15, 2010 at 6:06 PM

    They would mean any employee of a bank chartered out of the UK and all its foreign subsidiaries. Time to update the resume.

    -RBS employee

  28. Posted by Blanal | November 15, 2010 at 6:14 PM

    It’s worse in Norway, I promise

  29. Posted by Tax man | November 15, 2010 at 6:14 PM

    You people grossly overestimate the banks’ ability to relocate and it is not like Switzerland will really welcome an onslaught of foreigners.

  30. Posted by Dead_Cat | November 15, 2010 at 6:15 PM

    This is the trouble with Europe. Sooner or later it’s France’s turn to be in charge of something important.

  31. Posted by xel | November 15, 2010 at 6:24 PM

    suck somebody off, perhaps they’ll offer you to trade some commodities

  32. Posted by xel | November 15, 2010 at 6:24 PM

    suck somebody off, perhaps they’ll offer you to trade some commodities

  33. Posted by yup | November 15, 2010 at 6:46 PM

    There’s that old joke:

    In Heaven,
    The French are the chefs
    The Germans build the cars
    The British are the police
    The Swiss run everything
    The Italians are the lovers

    In Hell:
    The Germans are the police
    The British are the chefs
    The French build the cars
    The Italians run everything
    And the Swiss are the lovers

  34. Posted by Anonymous | November 15, 2010 at 7:19 PM

    Wow, the European Parliament has figured out yet another way to piss off the UK and make the Brits question the concept of the EU… well done!

  35. Posted by Mudslinger | November 15, 2010 at 7:21 PM

    Read the thread! Or ……… did you just look at the pictures. Must be
    Columbia B school !

  36. Posted by CurrencyTrader | November 15, 2010 at 7:34 PM

    Holy mother fucker that is great.

  37. Posted by Anonymous | November 15, 2010 at 7:34 PM

    Go easy on the guy, he is just repeating what he saw on Glenn Beck. I really think it’s our responsibility to educate him.

    Lets start off with something easy….K k. now make the sound….. kkkkkk….It’s used in UK or King. Now try S s. Make the sound…..sssssss….. its used in US or in this case Stupid comment

    If you need extra help meet me at Minetta’s, bring your coloring books so I know it’s you.

  38. Posted by Anonymous | November 15, 2010 at 7:56 PM

    Welcome with open arms, no.

    Gladly accept their money and grant them temporary residence visas (for a fee, of course, for a fee) whilst at the same time electing ultra-nationalists to the parliament, yes.

  39. Posted by Guest Guestoffersen | November 15, 2010 at 8:23 PM

    You people??? What do you mean, “you people”?

  40. Posted by Nyrebel2003 | November 15, 2010 at 9:39 PM

    Obama is president in the EU? Idiot.

  41. Posted by Barcap | November 16, 2010 at 5:38 AM

    Barcap… hey… guys… yes you who went to Barcap thinking it was more Lehman and less, well, Barcap… LOL @ your dumb asses

  42. Posted by History is a useless degree | November 16, 2010 at 10:50 AM

    new, switzerland wide tax on income over 250k CHF…so not so much

  43. Posted by Dead_Cat | November 16, 2010 at 11:00 AM

    Pretty much none of the British electorate want to be in the EU and the much-vaunted benefits are dubious, inefficiently delivered and come with an enormous bill. That bill, incidentally is likely to rise this year, while most member states are introducing heavy spending cuts domestically.

    The only rational conclusion is that it’s extension of British foreign policy since the year dot: our role in Europe is to divide it and stop it becoming too powerful (i.e. keep the French and Germans hating each other). That and prime ministers wanting to play at statesmanship.

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