2,800 City staff earned more than £1m last year

More than 2,800 people in the City earned more than £1m last year, the Financial Services Authority (FSA) revealed yesterday in a rare insight into pay levels. The City regulator also announced it said it had found 170 incidents of emoployees being given contracts which breach the new rules designed to discourage excessive risk-taking following the autumn 2008 financial meltdown.

Those rules require that up to 60 per cent of bonuses over deferred over three years.

The FSA said it had applied pressure to have the contracts redrawn but admitted that it is under pressure from industry lobbying because - it is argued - the bonus rules are having an "adverse effect on employee mobility or staff retention".

However, the FSA has warned the City that there will be more rules in future, not fewer, with new European directives coming into force.

Read a full report at the Guardian ·