The approval of preliminary European Union rules on bonus caps made big headlines last week, and for good reason. What went rather unnoticed, however, is that the rules also apply to Americans working for EU banks as well as the U.S. units of European banks.
In their current form, the rules would cap bonuses at 100% of base salary – or up to 250% of salary with shareholder approval. Deutsche Bank staffers in the U.S., for example, would be subject to the same caps as their German co-workers, according to Financial Times.
Morgan Stanley bankers, on the other hand, need not worry unless they are physically located in the EU. But yes, employees who happen to work in Europe at non EU-based banks will be subject to the cap. Taking that transfer to Germany doesn’t sound near as enticing, now does it?
While angry European bankers are protesting the caps, the controversy may soon reach its peak on Wall Street, a melting pot for global banks. Imagine working at Deutsche Bank, doing the same level of work as a local competitor at Morgan but without the opportunity to outperform him or her financially. U.S.-based banks as well as those in Asia may soon get a lot more popular.
Want to know why people still knock the door down to work at Goldman? The bank recorded losses from its sales and trading business during only 16 days in 2012.
Lloyds Chief Executive António Horta-Osório has asked that his $2.26 million bonus for 2012 only be paid if the U.K. government sells a third of its holdings in the bank at a healthy share price.
The top dogs in M&A and investment banking remained at their perch in 2012. J.P. Morgan held on to its title as the best-paid investment bank while Goldman Sachs topped the global M&A rankings.
Goldman Sachs booked a very healthy fourth quarter. And for the first time in a long time, bankers got together to party in style. Judging by the Instagram photos, the party looked pretty swanky.
Connecticut-based Tudor Investment Corp. appears poised to launch its first two equity hedge funds to clients in more than four years. Fifteen teams of portfolio managers would lead one of the funds.
Arqaam Capital, an emerging markets-focused investment bank based in Dubai, has increased staff by 20% since January 2012 and is continuing to expand.
Global M&A activity totaled $352 billion for the first two months of 2013, an 11% increase over last year.
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