LONDON, June 6 (Reuters) - Pay and bonuses in Britain'sfinancial services sector remain excessive and encouragerisk-taking, according to those working in it, underminingefforts by politicians and regulators to reform an industryblamed for its role in the financial crisis.
Britons struggling in the economic downturn have beeninfuriated by financial services companies, particularly banksrescued by the government at the height of the crisis, whichcontinue to dole out rewards many times the average wage.
Three-quarters of financial services employees, andtwo-thirds of senior managers, said some people in theirorganisations were still paid excessively, according to a surveypublished by the Chartered Institute of Personnel andDevelopment (CIPD) on Thursday.
Almost two-thirds of the 1,000 workers polled also said someof their colleagues were rewarded in a way that encouragedinappropriate behaviour, for example withholding informationfrom co-workers, excessive and unauthorised risk-taking and evenlying to customers. Fewer than one in three said they were proudto work in the financial services sector.
On top of the anger over pay, the public's trust in theindustry has been shaken by a series of scandals includinginterest rate-rigging, breaches of anti-money launderingcontrols and the mis-selling of products.
Finance Minister George Osborne set up a cross-partyParliamentary Commission on Banking Standards last year to lookat how to change the culture at banks. It will report itsrecommendations later this month.
Peter Cheese, chief executive of the CIPD, said someprogress has been made, with culture change now being takenseriously by the bosses of big institutions, as well asexecutive boards and regulators.
He described comments from people like Barclay's Chief Executive Antony Jenkins, who on his arrival at the banklast year vowed to tear up Barclays' profits-at-all-costsculture, as the "first and most critical step" towards realisingchange. But he said there was still a long way to go.
The CIPD survey showed the focus on reform has yet totrickle down from the top, with less than 40 percent of workerssaying senior management had led culture change initiativeswithin their organisations.
Cheese said firms who did not try to change could face widerproblems, particularly with recruiting.
"This generation (of graduates) is looking at it slightlydifferently and they are not leaping to work with a bank becausethey don't trust and believe in the culture, purpose and valueof the bank."
Barclays (BARC)
