Late Lunchtime Links: Lloyds may become the first to follow Deutsche in extending vesting periods. Who's next?

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Spot the M&A banker selling his wares

Spot the M&A banker selling his wares (Photo credit: Wikipedia)

When Anshu Jain and Jürgen Fitschen announced their plan to make senior managers at Deutsche Bank wait five whole years before they can get hold of any of their deferred bonuses, they admitted it was a risky move. No other banks have such widespread 'cliff vesting' for senior staff, conceded Jain. But he expressed the hope that other banks would implement something similar, soon.


Today it seems that Lloyds may soon obliged. The Financial Times reports that Lloyds Banking Group is considering both doing away with annual bonuses for its senior staff and deferring their incentive pay over 10 years.


Lloyds' banking and markets group is small and any changes are unlikely to make much difference in the grand scheme of things. However, headhunters say they've been told that other banks like UBS are looking at following Deutsche and making their senior staff wait longer for deferred stock. UBS declined to comment on the allegations. It already defers bonuses for board members over 5 years (although it doesn't make use of cliff vesting and allows access to the deferred bonus throughout the period). Any changes to bonus policies at UBS and elsewhere are unlikely to be announced until new remuneration reports are released along with annual reports next year.




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