UAE bankers expect their bonuses for 2009 getting hit by the current credit crisis, according to a report.
The emirate’s bankers estimate close to 40 percent cut in the bonuses that would be payable to them in 2010, when compared to 2008, UAE-based Emirates Business daily reported on Thursday.
Adel Al Alawi, CEO of GulfBankers, told the daily: “Bankers are being realistic this year, acknowledging any bonus is to be significantly smaller than in past years. The large payouts we have seen previously are history in 2009. Of course, there will always be exceptions.”
“The amount of bonus to be paid this year will be 40 percent less than last year.”
Emirates Business said that fixed-income bonuses will be particularly hit and focus will be on well-performing departments and retaining valued talent.
According to the daily, Panos Manolopoulos, managing partner Middle East at Stanton Chase, also believes we may see a 30 to 40 percent drop in bonuses.
However, employee salaries in the UAE are predicted to rise by up to 7.5 percent in 2010, according to a new survey of more than 100 companies.
The survey from the global HR consulting firm Mercer revealed that most firms (90 percent) said they will be raising salaries in 2010.
The Total Remuneration Survey (UAE) of more than 100 firms with close to 23,000 employees said base salaries will increase by between 7 and 7.5 percent in 2010.