bonus caps

If you or your firm aren’t already covered by one of Europe’s many bonus limitations, maybe now you are! Read more »

  • 24 Feb 2014 at 4:23 PM

Bonus Watch ’14: HSBC Has A Plan

They’ll be upping everyone’s “allowance” to compensate the EU’s so-called “bonus caps.” Read more »

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]

  • 26 Sep 2013 at 1:39 PM

Bonus Watch ’14: Britain Goes To The Barricades

The U.K. is on a bit of a winning streak in its legal battle to stop the European Union (read: France) from destroying London’s financial services industry, and it’s pressing its luck in a last-ditch bid to keep the vultures in Brussels and Paris from kind of but not really taking a chunk out of your paycheck. For in spite of what the other 27 members of the bloc think, it seems that the bonus curbs will both be ineffective and probably maybe sort of illegal under that grand monument to jargon and opacity, the EU Treaty. Read more »

  • 29 Jul 2013 at 3:39 PM
  • Banks

Bonus Watch ’14 And Beyond: Europe

The EU is amending its hilariously easy-to-skirt bonus restrictions, to punish you, should your firm allow its Tier 1 capital ratios fall below an arbitrary (and possibly variable) level. Read more »

The other half are prepared to inform people them’s the breaks. Read more »

  • 26 Apr 2013 at 1:00 PM

Deutsche Bank CFO: All Is Lost

Stefan Krause has faced up to the fact that the hedge funds will inherit the earth. Read more »