• 13 Sep 2011 at 10:49 AM
  • Banks

Bonus/Layoffs Watch ’11: European Bankers May Be Paid In Handshakes, New Drachmas

By Matt Levine

And they’ll be the lucky ones. This may have something to do with a Eurozone financial meltdown but let’s not neglect the role of 100% base-salary raises for MDs in ruining everyone else’s year:

Jonathan Nicholson, managing director of Astbury Marsden, a London executive-search firm, said more job losses are imminent.

“There are fewer bonuses to play with than ever before,” Nicholson said. “The fixed costs are now about 70 percent to 80 percent of overall total compensation, so you have less to play with the bonus pool than ever before. The only material way to make a difference in flexing costs is to cut jobs.” …

The rise in fixed costs is driven by an increase in base salaries after European regulators, including those in the U.K. and France, restricted when and in what form bankers can be paid. The average base salary of a managing director at a global investment bank in London surged to between 300,000 pounds ($474,480) and 500,000 pounds from 175,000 pounds to 250,000 pounds three years ago, said Jason Kennedy, chief executive officer of Kennedy Group, a London-based search firm.

More Job Cuts Loom for EU Banks With Fixed Pay [Bloomberg]

Comments (26)

  1. 1
    Posted by Guest | September 13, 2011 at 11:04 AM

    Chart showing the proper exchange rate between handshakes and Drachmas or you're fired.

    - D. Trump

  2. 2
    Posted by Nailz6 | September 13, 2011 at 11:24 AM

    Can't believe we got a post before noon.

  3. 3
    Posted by Guest | September 13, 2011 at 11:25 AM

    Reading DB this week and all i get is Matt Levine and this fucking guy.

    Kill me now.

  4. 4
    Posted by Backdoor_Bess | September 13, 2011 at 11:27 AM

    If by handshake you mean 12 inch dildo in the ass, then yes, I agree__

  5. 5
    Posted by pazzo83 | September 13, 2011 at 11:30 AM

    Wait, what are bonuses?

    - UBS MD

  6. 6
    Posted by Mexi_Cant | September 13, 2011 at 11:38 AM

    i) PMCO, hunny, where is today's new avatar?

    ii) Did anybody else spend half the night wanking to Djokovic's girlfriend? I mean that white hat thing she had on got me wetter then Jeffrey Epstein's girlfriend during easter.

  7. 7
    Posted by awkwardtruth | September 13, 2011 at 11:39 AM

    But, but we're adding value! Ok then, guess I'll go back to adjusting the font sizes on the pitch book then

    -bankers everywhere

  8. 8
    Posted by 25th Hour Trader | September 13, 2011 at 11:41 AM

    Spotted: ex-SocGen banker sitting outside of home office with sign that reads "Will risk your money for food".

    -GG (not my hero Gordon Gecko)

  9. 9
    Posted by geoffgeoffgeoff | September 13, 2011 at 11:57 AM

    Yeah, she was pretty incredible. I hate the bastard, and maybe more so now…

  10. 10
    Posted by Guest | September 13, 2011 at 11:59 AM

    Guys, I am mixing the kool-aid now. I will be handing out the dixie cups later and we will be practicing our White Night mass suicide rehearsals every night until Friday when we will be conducting the live show for Bess to find us all on Monday morning. Perhaps then she'll feel bad about leaving us here like this all week….

    Kind Regards,
    Jim J.

  11. 11
    Posted by trojan_ | September 13, 2011 at 12:04 PM

    Hired.
    -Commerzlandesbanken AG, Bremen

  12. 12
    Posted by wahoo | September 13, 2011 at 12:06 PM

    When you make happy in pants.

    - Nomura MD

  13. 13
    Posted by Guest | September 13, 2011 at 12:44 PM

    Sweet UBS style due diligence. Bess isn't coming back until later next week.

    Also, you're a dumbass.

    - everyone else

  14. 14
    Posted by Spicing things up | September 13, 2011 at 12:49 PM

    Matt–how about liveblogging from the Hustler Club this afternoon? You may find Kovner over there breaking the record.

  15. 15
    Posted by TheodoreBallgamePhD | September 13, 2011 at 1:00 PM

    Guest,

    Unsubscribe.

    -All Dealbreaker Readers

  16. 16
    Posted by doesn't get it | September 13, 2011 at 1:01 PM

    They're loosing a few pounds. This sounds great, a real a win-win situation and healthy at that.

    -big boned UBS MD

  17. 17
    Posted by FKApmco | September 13, 2011 at 1:36 PM

    Here it is Mexi. Btw, I look just like Jelena in real life.

  18. 18
    Posted by juniormistmaker | September 13, 2011 at 1:44 PM

    We're using Verdana 10 for maximum impact!

  19. 19
    Posted by Mexi_Cant | September 13, 2011 at 1:53 PM

    Shh, Angel's don't have names.

    Thank you for the photo biddy.

  20. 20
    Posted by geast | September 13, 2011 at 2:50 PM

    Loose pounds are dangerous, it is an injury waiting to happen.

  21. 21
    Posted by guy 2 cubes over | September 13, 2011 at 3:37 PM

    Use Helvetica fools.

  22. 22
    Posted by James | September 13, 2011 at 4:24 PM

    Nomura is bringing the axe to its employees. Another one bites the dust.

  23. 23
    Posted by Guest | September 13, 2011 at 5:27 PM

    Not really a subscription site, but your hearts in the right place.

    The standard response would be "kill yourself"

  24. 24
    Posted by Maggie | December 13, 2011 at 12:36 PM

    You’ve really helped me underatsnd the issues. Thanks.

  25. 25
    Posted by thocxdjfa | December 14, 2011 at 6:25 AM

    MAAwZf fayhgvcklwzz

  26. 26
    Posted by cnnrcb | December 15, 2011 at 5:55 AM

    uLsU2K wffaxxalpmuu

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