Robert Pickering, chief executive of investment broker Cazenove, has defended plans by its joint venture, JP Morgan Cazenove, to share £107 million between 850 staff, the Independent newspaper reports.
The merger between JP Morgan and Cazenove at the end of 2004 led to a reported increase of 47 per cent for the joint venture in tax profits and the majority of the money will be distributed among the 70 managing directors of the company.
However, 110 staff members at "director" level will also benefit from large payouts.
Mr Pickering said: "There have been some emotional arguments used about bonus pools but they are simply a reflection of our success.
"If you are making lots of money you are also paying lots of tax as well and it should be remembered that this is a cyclical business. Back in 2000 the stories were about bonus pools being slashed and people being fired in large numbers.
"There are lots of positive things to make us believe that this current bull phase continues to have legs. You can worry, if you want to, about the US economy and the credit cycle, but overall conditions are positive."
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