Skip to main content


2Second, to continue to increase flexibility in the cost structure. Great strides were made in 2005, 2006 and 2007 on this. Peak flexibility historically was in 2000, at 6.6% of revenues in variable staff costs. Now at 7.4% in 2007, 7.7% in 2006, 7.6% in 2005 and 7.8% in 2004, we have seen new peaks; and once again we have a sufficient 'shock absorber' in our cost structure, if revenue growth weakens, as it may well do following the financial crisis.