We’ve already mentioned RBS’s remuneration report today. What we didn’t mention, is that the bank explicitly stated that it won’t be increasing salaries again this year. More than 10,000 of its most senior employees will have their salaries frozen in 2012. Across the organization, the average salary increase will be only 1%. RBS appears to be channeling the zeitgeist. Mercer recently conducted a survey suggesting 33% of EMEA code staff will have their salaries frozen this year and the remainder can expect a sub-inflation rise of 2.8%. Goldman has already reduced salaries for both MDs and VPs. At worst, other banks will do the same. At best, we are in for a long period of salary stagnation.
RBS gave Nathan Bostock a 9% pay rise when he threatened to leave. (Financial News) Actually, Vikram Pandit is getting paid $53m. (Bloomberg) Actually, Bob Diamond is getting paid $17m. (Guardian) Barclays paid Bob’s tax bill. (Financial Times) Banks are macho places. (Guardian) Insolvency group Begbies Traynor has been making redundancies. (Evening Standard) Caliburn, a small London hedge fund, is cutting about half of its 32-strong headcount, closing itsGenevaoffice and moving into a smaller office inLondon. Its assets under management have halved, from $1.2bn in 2007. (Financial News) Citigroup has named a new co- head of M&A to, ‘expand the wallet and market share of its M&A franchise and increasing its participation in landmark and cross border transactions.’ (Bloomberg) Despite being weird, Ray Dalio can now be described as the world’s most successful hedge fund manager. (Guardian) 245 journalists at the FT will go on strike for 2 hours on Tuesday. (The Times)