Barclays hasn’t been too kind to its U.S. employees as of late. They fired a host of investment bankers earlier this month, plan to let go many more in the coming year, and now the bank has reportedly put a spur under the saddle of its American wealth management team.
The issue surrounds a remuneration rule aimed at improving the bank’s less-than-sterling reputation. The practice, which went into effect on Jan. 1, gives Barclays the ability formulate pay based not only on production, but also professional conduct, a metric never before used in pay calculations for brokers.
The comp breakdown is as follows, according to the Wall Street Journal. Advisors will receive roughly half their pay on a monthly basis, with the rest coming in quarterly lump sums. Those quarterly payments can be docked, however, if customer complaints come rolling in, for example.
While the first quarter has yet to be completed, advisors at Barclays are said to be frustrated with rule, despite unit head Tom Lee’s proclamation that the pay model has been “well received.” One recruiter told the Journal that at least 10 Barclays advisers have contacted him since the rule was laid out last year, which is saying something considering the firm employs only 275 U.S. brokers. At the very least, the rule could affect Barclays’ ability to recruit new talent.
However, advisers can take solace in the fact that some of their investment banking brethren are facing similar new-age pay models. Chief Executive Antony Jenkins recently announced a plan known as the “five Cs.” Bankers will been scored based on production, but also on customer and client, conduct, citizenship, colleague and company.
That’s actually six Cs, but who’s counting.
It’s one of the hardest things to do: being unemployed and desperate for a job yet appearing self-assured. If you want to pull it off, never utter this sentence.
The biggest winners of Comcast’s proposed $45.2 billion merger with Time Warner Cable may be the banks, which will generate as much as $143 million in investment banking fees. Advisers on the deal included Barclays, Morgan Stanley, J.P. Morgan and Citigroup, among others. Goldman Sachs represented Charter Communications, the losing bidder.
If you work in equity research, you may want to put these charts before your boss. While you’re not poorly paid, it appears time for a raise, based solely the value you provide.
Veteran J.P. Morgan equities trader Ryan Crane died earlier this month at his Stanford, CT home. No cause was given. He was 37.
Former FINRA exec Stephen Luparello will head the SEC's division of trading and markets, pending the commission’s vetting process. The division could use the help considering all the trading errors and exchange outages we’ve seen over the last year.
If you work on Wall Street and make over $500,000, you can relax. Mayor de Blasio’s new tax plan for wealthy city residents appears to have virtually no support from state lawmakers.
Jobless claims were up last week, but at least one economist sees a strong swing of employment activity building toward the spring.
Buzz Around the Office
A Mexican town has banned parents from naming their children Facebook, Rambo and Circumcision, along with 58 other names deemed too offensive.
Quote of the Day: “Basement smells bad. Look for cat poops, change litter. Happy Valentine’s Day.” – Martha Stewart in a note to her gardener.