Fears that the European Union will impose restrictions limiting bonuses to 100% of salaries may come to nothing. Bloomberg reports that it has seen plans drafted by Cyprus, which currently holds the EU presidency, suggesting that bonuses should be restricted to 500% of salary instead. If this were the case, the plans would be toothless: no bank paid average bonuses to its code staff that exceeded 500% of salaries last year. The Cypriot proposals are not assured of success however: Green politician Philippe Lambert, who is leading work on the bank capital law of which the compensation rules are a part, said they are unacceptable and will require negotiation.
Separately, we’ve been here before, many times, but it’s worth reiterating again: when you apply for a job at an investment bank (or elsewhere), your CV may be sifted by a computer algorithm. Most recently, someone has complained in our Q&A section that they applied to a graduate programme at BNP Paribas and received a rejection email at 5pm on a Saturday, taking this to imply that their application was assessed – and rejected – by a machine.
We can’t comment on BNP’s recruitment process, but we can confirm that many banks and recruitment firms will use algorithms to sift CVs. Today, the BBC has an interesting article on how to beat them. Much of it is common sense: make that you describe yourself using terms that are standard in your area of the industry – don’t write that you’re a trader with sales responsibilities if you’re a sales trader; think about adding a list of keywords to the start of your CV. “Putting the most important words first increases the computer’s chances of a ‘hit’,” says careers coach Wilma Tucker, from Right Management. She also advises that you use “action words” like ‘management’ instead of ‘managed’ if you want your CV to be selected.
Goldman Sachs only allocates its partner bonus pool after everyone else has been paid. (Guardian)
Panmure Gordon has hired the investment team from Matrix Corporate Capital. (Financial Times)
Sunrise Brokers, best-known as a equity derivatives broker, has hired the former head of equity capital markets execution at Deutsche Bank to launch a corporate finance business focused on small and mid-cap companies. (Financial News)
Schroders has hired 97 people over the past year. (Schroders)
An analysis of 147 “location decisions” taken by financial firms over the past six years, shows that 83 decided against investing in Britain, 27 took a “holding” position, and only a quarter chose to move business to the country. TheCityUK estimates that 85,000 jobs have already been lost as a result of a decline in the relative competitiveness of Britain versus other financial centres. (Telegraph)
Stories abound in Asia’s financial centres of bankers criss-crossing China, providing hours of advice without a penny to show for it. (Financial Times)
The world’s richest 200 people: a list. (Bloomberg)
Self-construction has become a risky job for all of us. (The New Enquiry)