bonuses

  • 21 Feb 2014 at 10:30 AM

Bonus Watch ’14: Citi CEOs

Mike Corbat scored himself a nice little raise. Read more »

Advisers at the Barclays Wealth & Investment Management division in the Americas will no longer get paid solely on how much money they bring in. Going forward, their compensation could be docked for misconduct…Barclays advisers will receive about half of their pay in the form of a monthly payment; the other half will be paid out every three months, according to people familiar with the new arrangement. While both payments will be based on a production formula similar to that at other firms, the quarterly payment also takes into account values-based criteria that include professional conduct and customer complaints. Poor performance in these areas could lead to a reduced payout. Mr. Lee said the new pay model was “well received.” But Andrew Parish, managing director at Axiom Consulting Group LLC, says he has fielded calls from at least 10 Barclays advisers in New York, Los Angeles and Chicago, among other places, since they learned of the new arrangement late last year. So far, none has decided to move elsewhere, he said. [WSJ]

Unlike Antony Jenkins, the rest of Team Barclays will be accepting bonuses this year, thanks. Read more »

  • 03 Feb 2014 at 1:52 PM

No Bonus For Me, Thanks: Barclays CEO

Reuters reports that for the second year in a row, Barclays Chief Executive Officer Antony Jenkins has turned down the bonus offered to him. This time around, he said that it would be inappropriate to take the money, in light of “the bank’s hefty bill to pay for past problems.” All of this probably comes as a surprise to another CEO, whose name shall not be mentioned, who thought they agreed to put up a united front re: bonus accepting in the face of legal fees, be they Libor, whale, mortgage, or alternate side parking ticket-related, and who at this moment is angrily dictating an email thanking Jenkins for making him look like a Grade A Jackass. 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]

Let’s see it’s just after 7:30PM in Dublin so carry the one and Finance Minister Michael Noonan is going to go with NOT ANY TIME SOON. Read more »

Deutsche Bank reduced salaries and bonuses at the investment bank, which also includes sales and trading, by 14 percent to 5.34 billion euros last year from 6.24 billion euros in 2012, the company said. The compensation fell 23 percent in the fourth quarter from a year earlier. “We are keeping an eye on the competition and the pack that we’re competing with for talent,” Jain said. “What we are doing is something the whole industry is doing at varying speeds.” The bank hasn’t lost a “material” number of investment bankers after overhauling its compensation system, which includes staggering annual bonuses over a longer period, he said. [Bloomberg]