UK
Tag: Deferrals
Hedge fund hiring on hold as firms battle pay rules
Hedge fund managers in the UK are delaying hiring decisions because of confusion over how new remuneration rules will impact their ability to pay senior and front office employees. The guidelines for hedge fund remuneration under the Alternative Investment Fund Managers Directive (AIFMD) published by the European Securities and Markets Authority (ESMA) in February will […]
Wall Street bonuses tumble by 38% in the front office
Investment banks may be keeping total bonus pools relatively stable this year, but certain front office staff are feeling the pain, with average bonuses down by a whopping 38% this year, according to eFinancialCareers’ annual bonus survey. The research took in responses from over 800 Wall Street professionals who had already been told their bonus […]
Bonuses at Asset Managers Fuelled by Worries Over Losing Staff
Fund managers worried about losing top staff are increasing pay and deferring bonuses for portfolio managers. Some of the bonus deferrals are in anticipation of increased regulation of pay at asset managers. The chairman of the Financial Services Authority in the UK, Lord Turner, said recently that portfolio managers’ bonuses should be “reconfigured”, so that […]
Barclays is deferring 100% of ALL bonuses over £250k
Tomorrow is Barclays’ bonus day. Today, bad news has emerged with regards to the structure of Barclays’ bonuses. Sky News reports that Barclays will be deferring 100% of bonuses for managing directors (MDs) in its investment bank. Barclays’ MDs will receive no cash bonuses at all during 2013. Barclays declined to comment on the allegations. […]
Credit Suisse bonuses capped at a lower level than rivals’
Credit Suisse’s bonuses were announced internally last week, but information is only just starting to emerge about the Swiss bank’s bonus structure. Headhunters and Credit Suisse insiders say the bank will be deferring an element of all compensation above CHF250k. In other words, cash compensation is capped at this level and once an individual’s combined […]
Battle of the bonuses at asset managers
Investment banks may become less attractive employers for fund managers as they withhold bonuses and defer pay. Banks that formerly shielded their fund managers from deferral schedules that lock in bonuses for up to four years at investment banks are now extending those restrictions to their asset management arms. “Investment banks are under pressure to […]
Jefferies’ secret to Paying All-Cash Bonuses
You might want to work at Jefferies. While banks like Deutsche are imposing punitive deferrals on bonus payments this year, especially for senior staff, Jefferies has told staff it will be splashing cash and paying the entirety of this year’s bonuses in instantly available ready money. Jefferies’ CEO Richard Handler and chairman Brian Friedman sent […]
Late Lunchtime Links: Bank of England indicates bonuses should be deferred for 30 years. Where to work if you want to make it in hedge funds
First bonuses were paid mostly at the end of the year, in cash. Then a fraction of bonuses was deferred over three years. Then a majority of bonuses was deferred over three years. Then Deutsche decided to make its managing directors wait five whole years until any of their bonuses vest. And now, the Bank […]
UBS’s bonus cap is innocuous, but five year deferrals are catching on
Now is the time to make a lot of noise about how awful bonuses are, to soothe shareholders with a promise to make amends for past transgressions, and then to make some symbolic gestures with maximum fanfare. Such has been the way at RBS in the past and is the current method at UBS. In […]
Would you work for Deutsche Bank if you had to wait five years to see anything of your bonus?
Credit Suisse’s PAF 2 programme is bad. But Deutsche Bank’s new bonus scheme for its 150 top investment bankers seems worse. For 2011, Credit Suisse granted its PAF 2 (‘Partner Asset Facility 2′) awards to 5,500 of its managing directors and senior employees. PAF2 made up 35% of last year’s senior-level bonuses at Credit Suisse and […]
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