RBS bonuses will be affected by Libor. So, it seems will bonuses at Barclays. Mark Kleinman City editor of Sky News, who has been accurate on these things in the past, said on Twitter today that Barclays’ overall bonus pool for 2012 will be between £1.5bn- £2bn under the bank’s current plans.
If Kleinman’s right, 2012 will be the third year running that Barclays’ bonus pool diminished. In 2011, it was £2.2bn. In 2010, it was £2.9bn. At worst, Barclays’ bonuses will therefore have declined by 50% in two years.
Separately, it’s been brought to our attention that Gary Cohn, president and chief operating officer of Goldman Sachs was interviewed by Bloomberg last week. Cohn was asked various interesting questions, including whether Goldman is now adequately sized for market conditions, whether compensation is at the right level and what it would take for Goldman to start hiring again.
Cohn responded that he’s never had a day at Goldman when he’s felt the bank was sized-right – at the top of the market it always feels like a bank is too small, at the bottom it always feels like a bank is too big. Compensation at Goldman is at the right level given the amount of competition for Goldman’s staff, said Cohn. The firm is currently in a “relatively good position from a headcount standpoint,” Cohn added. 2013 won’t be a growth year for hiring and the real question will be whether to replace departing staff or to make do. “In some cases, we may take some chances [not replace departing staff] and see what the enviroment is like,” Cohn said.
Long term, Cohn said Goldman will only start increasing headcount if there’s an upward trend in global GDP which will encourage clients back into the market, meaning Goldman will need more people to service them.
Tullett Prebon latest place to defer bonuses until after UK income tax cut in April. (Telegraph)
“Compliance is an ambivalent function. On the one hand you are seen as the regulators’ ally inside the investment firm; overseeing the implementation of their regulation. On the other hand, you are paid by the investment firm and part of their culture and hierarchy.” (Guardian)
Bad time to be a partner at Seymour Pierce. (Financial Times)
Nomura’s fixed income business has more than doubled its market share in the past two years. (Financial Times)
Ex-investment bankers become iPhone App entrepreneurs. (City Am)
How to be an effective loser. (James Altucher)
Christine Lagarde: “Leave the office at 5.30, take Wednesday afternoon off, don’t fill in your timesheet… Dare the difference and deliver.” (ForumBlog)
People who multi-task are impulsive sensation seekers. (Plosone)