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Testing the tolerance for lower bonuses at Morgan Stanley
Morgan Stanley will pay lower bonuses this year. James Gorman has made this clear. They will reputedly be down 10-30%. Senior staff will suffer most. So will traders and back office staff. Will Morgan Stanley bankers accept a pay cut? On a mean basis, employees at Morgan Stanley international were worse rewarded than other US [...]
Here’s how the new EU bonus rules are FAR better and slightly worse than expected
At last. The new EU bonus rules are out. Now it only remains for staff at the FSA to work all weekend formulating them into something UK specific. Much remains the same: the complicated deferral requirements are still in place (40%-60% deferred for at least 3 years, only half the ‘non-deferred’ element to be paid [...]
In fact, the harsh new EU bonus rules may apply to hardly anyone
After all the attention devoted to the bonus edicts emanating from the Committee of European Banking Supervisors (CEBS), it’s starting to look like the new roles will only impact a small minority of people working in the City. As a brief reminder, the rules state that some people will have anything from 40-60% of their [...]
Morgan Stanley’s underperformers must expect zero bonuses
As bonuses approach, there are rumours of apprehension at Morgan Stanley. After an incredibly bad third quarter in which Morgan Stanley’s trading operations did manifestly worse than rivals, the bank is said to be dissatisfied with some of its recent hires. In August 2009, Morgan Stanley announced its intention of making 400 sales and trading [...]
Why US quantitative easing could be beneficial for your bonus
Yesterday, Robert Zoellick, president of the World Bank, suggested it might be a good idea for a return to the gold standard. For the moment at least, this looks unlikely. It would probably, in any case, be unfeasible. This is fortunate, because, as Edmund Conway points out, a return to the gold standard would mean [...]
Bonuses looking smaller at Nordea, but bigger at SEB
Staff costs at Nordea rose sharply in the past three months, it emerged this week, despite the amount set aside for bonuses actually falling compared with last year. Nordea’s staff costs rose 8% to €721m in Q3 compared with Q3 2009, and were up 4% year-on-year in the nine months from January to September, the [...]
The nasty parts of the EU’s new bonus rules, and their probable effects
Just as the FSA’s consultation document on the UK compensation code is about to be closed pending the release of a policy statement next month, the Committee of European Banking Supervisors (CEBS) has stolen its thunder. Last night, CEBs issued a set of draft guidelines on bonuses. Subject to finalisations, they are likely to come [...]
Why the EU’s new compensation regulations are dreadful, and why they’re tame
If you tell a senior banker that between 40% and 60% of his or her bonus must be deferred over three to five years and that the cash portion will be limited to 20-30%, he or she is unlikely to bat an eyelid. After all, Bank of America reduced the cash component of its bonuses [...]
Global restrictions on banking and bonuses – where’s it’s punitive, where it isn’t (Updated)
In advance of tomorrow’s UK budget, next weekend’s G20 meeting, and the likelihood of further measures to curb banking pay and profitability, here’s a quick roundup of where we are right now in terms of global banking punitive rankings. Notably, the most worst place so far is probably Holland. However, the EU is keen on [...]
Private banking, asset management and risk shine in Q1
Asset managers, private bankers and compliance and risk specialists can all look forward to being in demand this year, if the latest clutch of first quarter results of the big Nordic banks are anything to go by. Q1 results for January to March have been just released by Nordea, Swedbank, SEB and Handelsbanken and show [...]
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