JPMorgan is (possibly) in shock. Matthew Small, a long-serving and senior compensation and benefits professional at the bank is quitting. Small is leaving JPMorgan in New York and is off to join UBS in Zurich. During a 15 year career at JPMorgan, Small was elevated from compensation and benefits manager to managing director dealing with compensation and benefits in the investment bank, to head of international benefits and then head of international benefits and head of compensation in business banking. Now he's going. At UBS, he will be on the human resources executive committee and will manage all the Swiss bank's compensation programmes.
People like Small are hot property in banking now. Investment banking compensation has become a complicated business. There are regulatory stipulations like the European Union's bonus cap. There's the need to defer pay, the need to structure pay so that it's deducted if certain thresholds aren't met, to claw pay back if wrongdoing is unearthed after it's been awarded, and to ensure that the whole package isn't so punitive that staff leave for rivals.
Get it wrong and the wrath of shareholders will be upon you (take Barclays). Get it right and staff will be quietly happy and no one will be any the wiser. Unsurprisingly, compensation and benefits staff in investment banks are well paid. The experienced ones are also highly sought after.
Separately if you want a job in finance and don't have much (or any experience), you could always try the Financial Conduct Authority in London. A new report has revealed that 30% of the people there have less than two years' experience.
Citi fails stress test. Mike Corbat declares self “deeply disappointed.” (Bloomberg)
Citigroup’s global head of oil trading has resigned to pursue other interests. (Reuters)
Citigroup has been recruiting for its pharmaceuticals equity research team. Hires include Nick Nieland, a three time Olympic javelin thrower. (Financial News)
Barclays engages 'weirdy beardy' in effort to change culture. (WSJ)
Bank of America has paid $9.3 billion to settle an investigation by federal regulators into dodgy mortgage-based securities sold in the run up to the 2008 financial crisis.(The Times)
UBS has suspended four more FX traders. (Reuters)
Mark Branson, a British-born ex-UBS banker is becoming head of the Swiss banking regulator. (Bloomberg)
How to tell if stress is destroying your performance. (Inc)
What to do if you're stressing out about the CFA exams. (300 Hours)
Bank increases pay for first time in 19 years. (Bloomberg)