Late Lunchtime Links: RBS is not really deferring bonuses much at all; Michel Barnier wants to cap bonuses across the EU

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Bonus cap

The bonus cap

As we noted earlier, the RBS bonus pool is not looking great. As has been variously pointed out, average total compensation at the bank is now £112k, with bonuses reduced from £50k last year, to just £23k today.

As has also been pointed out, BarCap is paying £204k per head, making it considerably more generous.

However, there is hope for employees at Bishopsgate: their deferral schedule seems really quite generous. Page 17 of RBS’s results announcement reveals that around 75% of RBS’s deferred bonuses will actually be paid in 2012. The remainder is being paid in 2013.

Separately, Bloomberg reports that Michel Barnier is “assessing rules” to cap bonuses across the entirety of the EU in the interest of “equality and fairness.” Barnier would apparently like to set “corridors” specifying legitimate levels of pay.

Financial News points out that Barnier’s team contains quite a few academics, a socialist and some civil servants as well as a few former senior retail bankers.


Stephen Hester says people will not work at RBS if it exudes the message: "come here, have a harder job and earn less." (Telegraph) 

Stephen Hester points out that Ulster bank is actually far more toxic than the investment bank. (Bloomberg)  

New new thing at RBS: CVA securitization. (Deus Ex Macchiato)

Some senior Morgan Stanley directors have formed a boutique, DBO, which plans to hire “aggressively” from Wall Street banks. (Financial Times) 

A mystery trader who has worked at both Citigroup and UBS is the one blowing the whistle on the LIBOR-rigging affair. (Reuters)

BofA will be making equities redundancies next week. (Businessweek)  

How to network with executive search firms. (HBR Blogs)

Tuberculosis circles Canary Wharf. (Bloomberg)

Facebook profiles predict your job performance. (Facebook)