It’s not looking good if you are an expensive senior banker, especially if you’re an expensive senior banker in fixed income. As we noted earlier, Credit Suisse has been targeting its senior staff in its job cuts.
Eric Varvel chief executive of the investment bank, elaborated a little during this morning’s call: “We let go of over 1,000 staff, and 40% were senior people. We went after senior people to de-layer the [investment banking division], and we made an effort to hire junior people and [integrate them within the firm],” he explained.
It has also emerged that Credit Suisse will be trimming the remuneration of its executive committee by 57%. UBS appears to be similarly targeting its senior bankers for punishment. On one hand, it’s paying special people special £80k a year retention bonuses. On the other, UBS is clawing back 50% of share-based bonuses awarded last year to its bankers whose bonuses exceeded $2m.
Separately, if you are a senior banker who loses your job, Harvard Business Review has an article about how to keep your spirits up. It looks at the case of Edward, a 31 year old banker, ‘with student loans, a new mortgage, and a third child on the way’, who lost his job in 2008.
“The hardest thing was telling my wife,” Edward said. “She fell down on the couch and cried for most of an hour. For two days, I didn’t sleep.”
Nevertheless, Edward managed to, “adapt and improvise,” and within 6 weeks had set himself up as a financial advisor. HBR says he did this in three ways: preparing carefully (he made a careful plan and executed it, he didn’t go to pieces); he stayed detached and serene and didn’t get overly committed or anxious to any one opportunity; he learned and adjusted – and altered his plan when it wasn’t working.
Brady Dougan: “We are encouraged that our business is off to a good start with year-to-date underlying return on equity consistent with our target level of 15 per cent.” (Financial Times)
VTB is hiring 200 equities bankers in Singapore, New York and Hong Kong, but is not necessarily paying guarantees. (Bloomberg)
Deutsche will pay 50% cash now, 50% in August. Anything above 200,000 euros will be deferred over 3 years. (Reuters)
Bonuses are like penis extensions, declares Ken Livingstone. (Telegraph)
Tell stories that are short and sweet because the mind of a Wall Street man is always moving so rapidly and focusing on so many different things that his attention span for social stories is very short. (CNBC)