The time has come to conclusively cudgel all rumours that you can earn more working for a technology firm than an investment bank. You can’t. – Unless you happen to be an exceptional programmer who was in a technology firm from the start and was given a wadge of fungible stock.
We know that banks pay more because both Goldman Sachs and Facebook are obliged to register accounts for their UK activities with Companies House in London. In the last year for which figures are available (2014), Goldman Sachs paid its London staff an average of £363k ($530k), while Facebook UK reportedly paid its British-based employees an average of £210k ($322k).
So, pay at Goldman is 73% higher. Remember that next time you feel like swapping finance for something a little more ‘on trend.’
Separately, it won’t just be co-heads and US broker dealers who are caught up in the vigour of Tidjane Thiam’s cost-cutting at Credit Suisse. Swiss Sunday paper Schweiz am Sonntag reported that Thiam has instructed heads of all major departments at the bank to cut costs by 7% to 10%. Worst affected are likely to be back office and technology staff whose jobs face displacement from Switzerland to ‘less costly regions’, like Asia.
John McFarlane, the man with all the power at Barclays, says Europe would benefit from a powerful investment bank forged from the merger of its existing investment banks. (Financial Times)
Ex-Lehman trader awarded a $41m bonus by his former employer. (WSJ)
Bill Gross’s bonus was more than 10 times the total remuneration of Wall Street bankers such as Lloyd Blankfein. (Financial Times)
Kweku Adoboli wants to do a PhD focusing on corporate governance and work with a former head of compliance education at HSBC “to take an active role teaching senior executives and junior finance professionals how to implement positive cultural change.” (Financial Times)
HSBC just lost a super-senior member of its compliance team in the US. (Reuters)
RBS will soon be known as rbs, because lower case is more modest. (Guardian)
Barclays’ new chief strategy officer used to be a FIG banker at Rothschild. (Bloomberg)
Sergio Ermotti made some inappropriate comments about the Ferrari IPO during the quiet period. (Financial Times)
Don’t leave banking: it’s not worth the risk. (Business Insider)
Enter your goals into this web page and they will be fulfilled in four easy steps. (HBR)
Photo credit: Sam Michel