In the world of investment banking, cash in king. Thus, when assessing an investment bank’s bonus structure, the portion given in cash is the number to look at.
Despite taking home a smaller percentage of revenue for 2012, investment bankers at Goldman Sachs are leaving others green with envy. Some mid-level staffers received as much as 80% of their bonuses in cash, the high-water mark for the industry, according to Financial News. The percentage fell slightly for more well-compensated bankers.
J.P. Morgan, Citigroup and Bank of America, meanwhile, paid bonuses that were comprised of between 60% and 75% cash, depending on seniority. As with Goldman, senior bankers with the firms were paid with a higher percentage of stock, according to Financial News.
The tough luck losers for 2012 were Morgan Stanley bankers, who, if they made more than $350,000, had 100% of their bonuses deferred, with the first round of payments coming in May. eFC reported earlier that the deferred portion of Morgan Stanley’s bonus will be split into 50% deferred cash and 50% deferred stock.
Traditionally speaking, hard cash caps and deferred bonuses create great upheaval within investment banks, with departures soon following. The difference this time around is that there is really nowhere for frustrated bankers to go.
With the allure of investment banks fading, hedge funds have been scouring top university campuses more than ever this year, eyeing the best of the best. Graduate applications to hedge funds are on the rise.
Citigroup’s effort to displace Deutsche Bank atop Euromoney magazine’s annual ranking of foreign-exchange firms will rely heavily on the alter ego of 53-year-old Bernie Sinniah, the bank’s worldwide head of foreign-exchange sales. His name is Bernieman, and he wears tights.
Jeremy Norris, head of Barclays’ equity sales trading desk in Asia, will retire from the industry later this year. His departure is not said to be part of the U.K. bank’s job cuts.
Bank of America is hiring small business bankers. Citigroup is firing them.
Longtime Goldman Sachs partner Luigi Rizzo, managing director of European financial mergers and acquisitions, is leaving the bank. Goldman had the top ranked global M&A team in 2012.
The overriding sentiment from top bankers at Davos: The global economy is getting healthier, yet still remains fragile. “Optimism, but with a sober tone,” said Bank of America Chief Executive Brian Moynihan.
If you are one of the 10,000 UBS employees affected by the winding down of the bank’s investment banking business, your fate was largely decided in September during a luxurious dinner at a 437-year-old Swiss castle overlooking Lake Constance.
Buzz Around the Office
A Rio de Janeiro family lost its pet tortoise in 1982, assuming it had run away when the door was left open. Thirty years later, after cleaning out the second floor, the family found a very alive Manuela, who had survived for three decades in an old box. He’d been dining on termites.
List of the Day: Title Supplements
A shiny new title isn’t the end goal for every employee. These three factors often outrank a new title when it comes to workplace satisfaction.
- Flexible schedule.
- Being able to make a difference.
- Ability to work from home.