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.
Credit Suisse is said to be selling its ETF Business. Blackrock and State Street might buy it. (Reuters)
People in London want to work for DBS in Singapore. (eFinancialCareers)
The UK’s tougher immigration policy is bad news for banks in London. By contrast, “The attitude in Singapore is: ‘How can we help you to move here?’” says Chris Cummings of TheCityUK. (The Economist)
If Shanghai wants to become an international financial services hub, it will need to find another 160,000 people from somewhere. (eFinancialCareers)
Goldman’s bonuses became corrupted circa 2005, says Greg. (Bloomberg)
Goldman’s internal guide on how to deal with Greg Smith. (iModules)
Greg Smith seems to have developed a crush on Goldman Sachs, in a first-kiss kind of way. (BusinessWeek)
Things are not going well for IT company Fidessa. (Evening Standard)
Over the past year, Citigroup has reduced costs by just 3% compared with an 11% cut in the investment bank at JP Morgan. Its cost/income ratio of 70% over the past 12 months is at least five percentage points too high, and bringing this down to a more sustainable 65% would require another $1bn in cuts. (Financial News)
Senior M&A bankers are setting up ‘advisory kiosks’ - for example, Simon Robey is going for a “small and discreet” advisory venture, which is likely to have fewer than 10 people. (Financial Times)
A reminder that Deutsche isn’t boosting return on equity by chasing revenue or market share, but by cutting the cost income ratio from 78% last year to 65% by 2015. (Euromoney)
RBS is investing £80m in upgrading its IT systems. (Telegraph)
Why your brain likes a good handshake. (Big Think)
Uma Thurman and Arki Busson have named their child: Rosalind Arusha Arkadina Altalune Florence Thurman-Busson. (Sunday Times)