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How big are BarCap’s guarantees?

So, (and as members of BarCap’s press office have variously pointed out), we were wrong and wrong again. Not only is BarCap really hiring, but it does not appear to be holding out for any more former Lehman people from Nomura.

In the past week, BarCap has announced the imminent arrival of Howard Spooner and Sonalee Parekh from Goldman, Sam Dean from Deutsche Bank, and Jim Renwick from UBS. We think it’s also hired William Tovey from UBS, but isn’t letting on.

The question now, therefore, is how much BarCap’s paying to attract all these people. The bank would undoubtedly point to the strength of its franchise as a sufficient lure, but the Financial News’ William Wright says ‘indecent amounts of money’ are being offered.

How indecent? According to one headhunter (with intimate knowledge of the BarCap situation), the bank is “aggressively competitive” on pay and is offering the occasional two year guarantee to senior people. Senior hires like Dean and Spooner are thought to have got seven figure deals.

This doesn’t seem particularly obscene. And an equities headhunter at a rival firm says market rumour is that the packages for people hired out of UBS and Citigroup weren’t very big at all.

Comments (9)

  1. Are Barcap’s guarantees as big as the new Goldman Sachs’?

  2. What are Barcap going to do with all these people? The mind boggles.

  3. Word on the street is theyre planning on crushing them all up and making smootheis out of them… Pineapple, blueberry, and crushed-equity-linked-trader.

    Only way to make big money nowadays is through smoothies.

    Innocent Smoothies Taste Like Nappies Reply
  4. It strikes me as buying guns after the war when they should be really mending fences. They’re sucking up all the fail from other banks.

  5. or maybe planting new fields after the fire

  6. no, its all about smoothies! :D

  7. Hard to see how hiring ECM guys from DB is a fail. Hiring from Citi, UBS etc where salaries are capped, yes, but from the non-TARP (equivalent banks) you will have to pay to get them to move to a shop like BarCap in this environment.

  8. BarCap have given a 1.1m guaranteed bonus to one of our equity research MDs who was pulling in 600-700k bonuses prior to being poached. Just to give you some perspective.

    Why didn’t they headhunt ME?!! Reply
  9. so barcap management blow the budget while us who have toiled away building the franchise get sweet FA? What a shambles….barcap rates business is subsidising the useless world of equities….

    sceptical of canary wharf Reply

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