Some bosses in the FTSE 100 index are contracted to receive a bonus even if the company only achieves a one per cent profit rise over the course of a year, it has emerged.
According to thinktank The Bow Group, if profits rise one per cent above inflation, 27 per cent of FTSE 100 bosses will receive a pay out.
The report's author, Christopher Mahon, stated that bonuses are designed to "reward exceptional performances" and should not be given out as "default".
"Setting very low performance targets encourages a bonuses for nothing culture where merely standing still is rewarded," he warned.
Furthermore, one in ten companies said they continue to pay out bonuses even if profits fail to beat inflation.
It was revealed last month by eFinancialCareers that 52 per cent of City workers are prepared to leave their company if they do not receive a big enough bonus.
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