Superstars aside, Aus bankers are in subdued mood when it comes to 2010 bonuses

With the payment season just around the corner, it seems only senior front-office stars can look forward to bumper bonuses.

The view of one recruiter, who asked not to be named, is that bonus expectations have been tempered following offshore redundancies made by Barclays, Credit Suisse and Bank of America Merrill Lynch, as well as local layoffs from Macquarie.

"In Australia, ECM activity is down and several M&As are yet to be confirmed, although proprietary and price-making trading profits seem to be strong again. The best way to describe the mood is hopeful rather than entitled," he adds.

John Coles, chief executive, Executive Group International, agrees that bonuses will generally be thin on the ground, although rainmakers will continue to be well looked after in proportion to the business they have generated. They can receive bonuses of between 200 and 400 per cent of base salary.

"The deal makers will be looked after, while bonuses for support and back-office staff will be skinny. This can be a good way to send a message to people that they're no longer required without actually retrenching them," adds Coles.

Interestingly, all the foreign investment banks have significantly raised base salaries as a proportion of total compensation, according to another anonymous head hunter. "But for superstars, an increase of 10 to 20 per cent of total compensation would be well regarded," he adds.

The upshot of a squeeze on bonuses is that some financial markets salespeople will move if they are not well compensated, as will corporate finance staff at director level and below.

"Some of the Australian and global investment banks, which have tended to attract and retain recruits with the prospect of decent bonuses can expect to lose some talent as a result of not meeting expectations," says Kym Woolf, senior consultant, financial services division, Porterallen.