Financial firms are concentrating on increased pay deals ahead of short-term incentive schemes, according to a new survey from human capital, compensation and employee benefits consultancy Mercer.

The survey of 61 global financial firms found that:

• a third had received some form of government aid
• 82% had imposed limits on their executive remuneration programmes
• more than 80% said they planned to alter their annual bonus or short-term incentive schemes
• 68% had introduced performances scorecards measured against both financial and non-financial performance
• one-year bonus guarantees were being eliminated or restricted by 41% of respondents, while 64% have limited or eliminated multi-year bonus guarantees
• golden parachute payments (given to executives leaving a company) have been cut out by 41% of respondents

Vicki Elliott, worldwide partner and leader of Mercer’s financial services human capital consulting network, says: “National regulators are attempting to make the sector consider risk more thoughtfully in their performance measurement and reward schemes, so as not to encourage excessive risk-taking behaviours.

“Our data shows that the majority of participants are changing the nature of their pay structures and their short-term incentive schemes, including the way performance is measured and evaluated. The industry is moving in the right direction.”