I recently saw article in The Sunday Times that mentions that employees may be able to claw back thousands in lost commission, and I was rather intrigued as to what this might mean to financial services.
The industry has so often relied on bonuses (often through fees or commission) to boost their earnings beyond a very modest basic salary.
Surely the ramifications here are far reaching, but I wonder just by how much and whether financial services employers are indeed prepared to argue what level of past earnings for the holiday pay people should be entitled to?
Having worked in financial services for almost 25 years, I have a fairly broad understanding of the sort of basic salaries people enjoy, as well as the bonuses they get based on OTE, and it is in many cases, I suspect, a million miles away from the figures they use in this example.
There are almost 32,700 advisers in the industry and two thirds of them are employed and earn the equivalent of £100,000 with 40 per cent of this made up of basic salary. Some 21,797 advisers could be in for a pay-out of £27,000 a piece; that is just over £588 million.
But perhaps this is chicken feed for an industry so wealthy it would not miss this extra amount, along with all the other bonus payments it regularly pays out?
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