Managers at Babcock are busy informing their minions how much they’ll earn in bonuses this year. It should be (very) good news.
The investment bank announced last month that its net profit had jumped 58% in the latest year, to AU$407m, and that its bonus pool had risen an impressive 38.5%, to AU$573m.
Based on the bank’s 1,435 headcount at the end of December, the average bonus per employee will be AU$400k, although chief executive Phil Green and his senior team will be expected to take home much more than that. The annual bonuses will be paid out around the end of March.
Babcock & Brown grew its headcount aggressively last year, adding more than 400 new staff.
Recruiters expect Babcock & Brown’s bonuses to be generous, although maybe not in quite the same league as Macquarie’s millionaires’ factory, which paid retiring boss Allan Moss more than AU$25m for last year, plus AU$75m in other entitlements.
“We’re not going to comment on our bonus scheme,” a Babcock & Brown spokeswoman said. “The amount apportioned to bonuses was detailed in our latest results. Everyone is having a discussion with their internal manager this week.”
Wilson HTM analyst Brett Le Mesurier says the earnings outlook for Babcock remains strong, and believes the bank will deliver on its profit guidance.
“The growth is being driven from the infrastructure investment side. They’re going down the development path into infrastructure assets with reliable income streams.”