Goldman Sachs is pioneering a new type of financial innovation: European compensation structures. Goldman has gained approval from U.K. regulators for a complex pay structure, according to people familiar with the matter, putting it ahead of rivals still scrambling to deal with a new European Union bonus cap. U.K.-based staff are being told about the details of this year’s pay structure but the information isn’t public yet…Allowances won’t count toward pension contributions but, crucially, will count as fixed pay in bonus calculations—essentially giving banks a partial way around the bonus cap…Backers of the bonus cap say reducing overall pay levels wasn’t their goal. Instead it was to make sure pay structures didn’t encourage short-term risk-taking, said Arlene McCarthy, a British member of the European Parliament who helped draft the rules. “I don’t give a s— what they’re paid frankly,” she said. [WSJ]

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Comments (10)

  1. Posted by Guest | January 31, 2014 at 1:10 PM

    Sounds like a new product line developing…. a desk that can value and trade bankers bonuses in a secondary market.

  2. Posted by CNN Breaking News | January 31, 2014 at 1:27 PM

    Shorting that ETF…

  3. Posted by Bored Guest | January 31, 2014 at 1:58 PM

    That picture just makes me want to scratch under his chin and rub his head and behind his ears and say "Good boy! You're such a good boy, aren't you?" using a deeper than normal voice.

  4. Posted by McFly | January 31, 2014 at 2:18 PM

    Lloyd, you are my density ….

  5. Posted by guest | January 31, 2014 at 2:24 PM

    Back in business! "I'm short your deferred bonus" t-shirts coming on up!

    -Guy who sold "I'm short your house" t-shirts

  6. Posted by Late 2013 Awards | January 31, 2014 at 3:20 PM

    Henry Waxman or Blankfein for "House-Elf of the Year"?

  7. Posted by Jackass | January 31, 2014 at 11:31 PM

    Bonuses are overrated.

    – Gorman

  8. Posted by UBS MD | February 1, 2014 at 9:50 AM

    What exactly is a bonus cap?

  9. Posted by guest | February 3, 2014 at 4:44 AM

    Whats with all the hate? UBS is better than Goldman and the rest in Asia and Australia (M&A, ECM, DCM, eq vol executed etc). Suck on that you american phaggots.

  10. Posted by MFIN Grad | February 4, 2014 at 10:26 AM

    strong post with good supporting details,pls stick around