The previously rumored layoffs at BarCap, expected to affect 7% of the global staff, are apparently going down circa now in New York. That’s all the info we have right at the moment.
In the former category: almost everyone. No specific numbers yet, but Barclays is expected to announce next week that only about 38% of revenue generated will go towards payouts (one of the lowest levels in the firm’s history). In the latter category: Bob Diamond. The Barclays Capital chief’s take home will be clocking in at about £20m, though it’s going to be deferred for three years so, you know, it’s not that great. Certainly nothing to be envious about, unless you’re this li’l fella, who’s making less than everyone this year. But lest any of the Barclettes think Bobby’s not worth every penny, let us remind you, he works hard for the money.
[Bob] has a habit of taking off his suit jacket and slinging it over his shoulder before sitting on the edge of one of the trading desks — a habit that his traders describe as his move, as in, “he has this thing he does with his jacket, when he wants to talk to us, it’s his move…”
Last week we were informed of the unbelievable news that 1st/2nd/3rd year sales&trading analysts head been led to believe (by their own assumptions) that they’d be getting 10k salary bumps because 1st/2nd/3rd year banking analysts got raises and fair is fair. Apparently not in Phil Mickelson’s house! The s&t’ers got nothing, and what stung the most, we’re told, is that HR didn’t even think to say it was sorry for getting the junior rainmakers’ hopes up. Today, it gets even worse. From an associate who, Bob Diamond I hope you’re listening good and hard, is thisclose to considering the possibility of maybe leaving if a more desirable situation (a call back from Dick Fuld’s new shop) presents itself:
Just a heads up, the same call/conversation took place with the IBD analysts/associates last week. The analysts had their conference call first in which they were told they would be getting a $10k bump to $70k/$80k/$90k (1st/2nd/3rd). All the associates heard the cheering on the floor and when we found out what was going on, expected the same bump on our call scheduled for 15 minutes after the analyst call. Needless to say, we didn’t get the bump. We were told the firm would “reevaluate” the base salary situation in march (most likely after everyone has already left for other firms). What’s more, the folks coming in through the Barclays side get paid $10k more than the Lehman associates.
Seriously, Bob Diamond, what kind of bucket shop are you running over there? You cannot get people’s hopes up like this. I’m telling you, these junior rainmakers have options. They will walk if you don’t make this right.
The conference call on which HR told us 1st 2nd and 3rd year s/t analysts that we were getting shafted? Laughable fiasco. They held the same call last week with bankers to tell them about the raise. So everyone in s/t was expecting the same on our call this week. HR also wouldn’t explain a thing. Major foul-up.
Just who does Bob Diamond think he is, some overheated junior rainmakers at BarCap would like to know? Salaries for IB first years are apparently being upped to 70k while S&T employees (3 months counts) are remaining at 60k, a “snub” (obviously not my words) they are “none too happy about.” What are they going to do about it?