Compensation

  • intense Lloyd

    Banks

    Goldman Exits A Tax Trade Early

    Here is an important cultural difference between the US and the UK that you should, like, stick in the boot of your lorry or whatever: in the UK, it’s apparently not socially acceptable to put off paying bonuses by two months to save your employees five percentage points in taxes. In America, it’s considered perfectly […]

    / Jan 15, 2013 at 2:48 PM
  • News

    Paul Taubman’s Gardening Bill: $1.7 Million

    Not that he needs the work, but ousted almost-former Morgan Stanley dealmaker Paul Taubman will be available on May 5.

    / Jan 7, 2013 at 1:53 PM
  • jamiedimon

    News

    This Is America, Last Time Jamie Dimon Checked

    Jamie Dimon, the CEO of the country’s largest bank by assets, says that regulating Wall Street pay could put us on the road to communism. “We all want an equitable society. We need to have a conversation about what makes it equitable,” the JPMorgan Chase CEO said at The New York Times DealBook conference on […]

    / Dec 13, 2012 at 5:43 PM
  • bonusbitch

    News

    Bonus Watch ’12: Whole Bunch Of Financial Services Employees Will Get Nothing, May Or May Not Like It

    Santa will leave many bankers and traders empty-handed this holiday season. One in five Wall Streeters won’t get a bonus for 2012, according to a closely watched compensation study set to be released next week. That figure is up sharply from last year, when roughly 13% of bonus-eligible employees got no added year-end pay, according […]

    / Oct 25, 2012 at 6:19 PM
  • Soothing soothing Brussels

    Banks, News

    The EU Wants Bankers To Get A Nice Interest Rate On Their Deferred Pay

    In the war against bankers’ pay the EU has a secret weapon: Banks should pay bonuses in debt, which would be wiped out if a bank failed, an EU banking report will suggest as Europe attempts to step up the fight against bankers’ pay. I’ve been sort of fond of this for a while. It’s […]

    / Oct 2, 2012 at 11:44 AM
  • It's certainly *possible* that one or more of these people is a mutual fund manager, and/or dapper.

    News

    Mutual Fund Managers Get Paid For Picking Good Stocks Only When It’s Worth It

    Mutual funds are kind of weird in that they basically aren’t allowed to get paid for performance, so they charge investors a flat percentage of assets under management, so for mutual fund managers looking dapper on CNBC is often more profitable than sitting in your office researching stocks. Still – and perhaps perversely – performance […]

    / Aug 16, 2012 at 5:09 PM
  • richard_handler--300x300

    News

    Bonus Watch ’12: Jefferies Wonders Aloud How Its Ass Tastes

    Jefferies set aside $870 million in the first six months of its fiscal year, enough to pay its 3,809 employees an average of $228,407. Goldman Sachs set aside $225,789 for each of its 32,300 workers. Average pay for the 26,553 people in JPMorgan’s investment bank was $184,989, or at least 18 percent less than Jefferies’s […]

    / Jul 26, 2012 at 12:30 PM
  • News

    Vikram Pandit Is Committed To Getting Paid

    If you didn’t know Chief Executive Officer Vikram Pandit, you might think he enjoyed not being compensated for the work he does at Citigroup because for quite some time, he wasn’t. And although the “I will only get paid $1/year until Citi turns a profit” exercise was fun for a while, he was pretty happy when the old jalopy started making money again, in part because it meant he could receive a paycheck. Then last April, his shareholders rejected the bank’s executive pay plan, claiming the Big C “lets Chief Executive Officer Vikram Pandit collect millions of dollars in rewards too easily.” And while it’s possible that Citi shareholders are just a bunch of pricks who chose to overlook the fact that Uncle Vikula didn’t collect squat for several years and once had an entire article written about the fact that lieutenants attributed a “new bounce in his step” to him daydreaming “the day when he is going to earn more than a $1 a year,” maybe they just assume that he doesn’t care about getting paid either way? Anyway, here’s Vickles, reminding anyone who forgot about the sacrifices he made and setting the record straight:

    “The board has this process with them, they’re going through it, and they are committed, as I am, to making sure that they resolve this,” Pandit said. “I want to get paid what the board thinks is right for me, for the job that I’ve done and for the incentives that they think I ought to have.” Pandit told lawmakers in 2009 that he would take a $1 annual salary until he restored the bank to profitability.

    Citigroup made a $21.7 billion profit for 2011 and 2010 combined, compared with a $29.3 billion loss for the two preceding years. “When the company was losing money, I stepped up and said I’ll take a dollar a year and I did, exactly for that reason, exactly the right thing to do,” Pandit said.

    For those having trouble separating the nice guy/don’t want to offend anyone statement from what he’s actually trying to say, a rough translation of the above would be: get me paid, bitch!

    Citigroup Will Resolve CEO Pay By End Of Year, Pandit Says [Bloomberg]

    / Jun 22, 2012 at 11:58 AM
  • News

    Bonus Watch ’13 & Beyond Will Be Pretty Predictable In Europe

    You would think that European regulators have a lot to worry about with their banks but they’ve got time for a surprising distraction: finalizing a plan to cap bankers’ bonuses at 1x base compensation*: Bankers’ bonuses across the European Union are set to be limited by law, with many bank lobbyists admitting in private that […]

    / Jun 13, 2012 at 7:08 PM
  • News

    Fourth-Highest-Paid Bank CEO Made Negative Ten Million Dollars in 2011

    Here is a fun thing we can do, which is put arbitrary numbers in a list and see how they look. Shall we? We shall. First, here is how much various bank CEOs and assorted other miscreants made in 2011, if you don’t worry too much about what “made” and “in 2011″ mean*: This list […]

    / Jun 5, 2012 at 4:43 PM
  • News

    Former Major League Baseball Union Rep Is Sickened By Wall Street Pay

    Last month, Rochedale analyst Dick Bové sent out a note to clients that began with what he dubbed “some interesting stats.” Said stats were salaries of the New York Yankees’ top infielders (“not including promotional deals”!) versus those of JPMorgan’s Jamie Dimon, Wells Fargo’s John Stumpf, Citigroup’s Vikram Pandit, and Bank of America’s Brian Moynihan. The baseball players’ compensation totaled about $80 million, the CEOs’ $65 million. Fair? Bové didn’t think so, noting that while the talentless hacks in the Bronx have won but single World Series in the last 10 years, the banks run by the aforementioned CEOs “impact virtually every American household” (and if pressed to, could surely bring home at least a few Major League Baseball championships).

    “Clearly, society values the New York Yankees infield above that of the leaders of the banking industry even without a World Series ring,”  Bové concluded sarcastically, shouting “nailed it” at Mr. Giraffe. Obviously, Bové is of the mind that it’s a crock how little these chief executives are paid considering all they do compared to noncontributing zeroes like Alex Rodriguez and Co. It’s unclear if the former head of MLB’s players’ union caught Bové’s riff or if not but last night he offered something of a rebuttal and, spoiler alert, he thinks Wall Street pay is bull shit.

    Appearing at the New York University School of Law on Tuesday night to discuss the 40th anniversary of the first baseball strike and the rise of the players’ association, Marvin Miller, the 95-year-old former union head, spoke for 68 minutes and delivered a blistering criticism of corporate pay. He also said collusion by owners in the mid-1980s was worse than the Black Sox scandal in 1919 and claimed the first baseball commissioner, Kenesaw Mountain Landis, may have been a member of the Klu Klux Klan. “Let’s take chief executive officers of important corporations, or the stock exchange or Wall Street firms,” he said. “The typical way that compensation is set is for the board of directors, most of whom if not all of whom have been appointed directly by the CEO, decide what the CEO’s salary should be, or they have a committee, a compensation committee composed of board members.

    “The first thing about that is that here you have a direct conflict of interest, because sitting on a board are executives of other corporations, and what they are doing is adding ammunition to their own quest for higher salaries. And it’s such an obvious conflict of interest that it’s awful. Of course they’re going to vote for higher salaries.” He said the directors are at fault because “they don’t pay for it. It’s paid for by stockholders, who have had no voice on what the salaries and compensation and perks of the chief executive should be.” He then compared the system to baseball, where the average salary on opening day this year was $3.4 million and the Yankees’ Alex Rodriguez topped players at $30 million. “There always has been and is a rule that no contract of a player is valid unless it is signed by the franchise owner or somebody designated by the franchise owner in his place,” Miller said. “In other words, no salary is put on paper and becomes valid until the man who is going to pay for it, the owner of the franchise, has signed the contract. A better check and balance you can’t find anywhere.”

    According to Miller, “the more democratic thing is to require the approval of a majority of the stockholders.”

    Whose Pay Is More Deserved: CEOs or Ball Players? [Real Time Economics]
    Marvin Miller Blasts Corporate Pay [AP]
    Earlier: Dick “Fire A-Rod” Bové: Underpaid Bank CEOs Should Seek Yankees Tryout

    / Apr 25, 2012 at 3:55 PM
  • News

    Citigroup Investors Don’t Care About Making Vikram Pandit Smile

    [caption id="attachment_73871" align="alignleft" width="234" caption="Y'all can kiss this ear to ear grin good-bye"][/caption]

    In the spring of 2010, almost exactly two years ago to date, the New York Times reported that some of Vikram Pandit’s top lieutenants had noticed “a new bounce in his step” and “a smile on his face,” with one executive speculating that the Citi CEO’s cheer could be attributed to the fact that he was starting to “see the day when he will earn more than $1 a year” within reach. On January 18, 2011, that day came. After essentially not receiving a salary since 2008, when he pledged to abstain from getting paid until Citi turned a profit, the board of directors approved “an increase in the annual rate of base salary for Vikram from $1 per year to $1,750,000 per year, effective immediately.” It felt good. Really good. Know what doesn’t? This crap.

    Citigroup investors rejected the bank’s executive pay plan, a first among the six largest U.S. lenders, amid criticism it lets Chief Executive Officer Vikram Pandit collect millions of dollars in rewards too easily. About 45 percent of the votes favored the plan, which Citigroup had argued would help attract and retain top talent, according to a preliminary tally at the New York-based firm’s annual meeting in Dallas today. While the vote isn’t binding, outgoing Chairman Richard Parsons said changes will be made.

    Citigroup Shareholders Reject Management’s Compensation Plan [Bloomberg]

    / Apr 17, 2012 at 7:13 PM
  • News

    You Don’t Become The World’s Leading Hedge Fund Manager Without Learning To Delegate The Most Critical Of Tasks

    How does a nanny earn more than the average pediatrician? The simple answer is hard work — plus a strange seller’s market that follows a couple of quirky economic principles. A typical high-priced nanny effectively signs her (and they are almost always women) life over to the family she works for…And, alas, it seems that there just aren’t enough “good” nannies, always on call, to go around. Especially since a wealthy family’s demands can be pretty specific. According to Pavillion’s vice president, Seth Norman Greenberg, a nanny increases her market value if she speaks fluent French (or, increasingly, Mandarin); can cook a four-course meal (and, occasionally, macrobiotic dishes); and ride, wash and groom a horse. Greenberg has also known families to prize nannies who can steer a 32-foot boat, help manage an art collection or, in one case, drive a Zamboni to clean a private ice rink. [NYT via BI, related]

    / Mar 20, 2012 at 3:29 PM
  • Banks, News

    Jefferies Bankers Are Happy To Pay Jefferies Shareholders $6mm For The Privilege Of Not Being Jefferies Shareholders

    What is the best thing about these Jefferies bonuses? For me it’s this: For 2011, we offered our employees the option to receive the stock portion of their year-end compensation in the form of either shares or cash, with the cash amount being equal to 75% of the grant-date amount of the stock that an […]

    / Jan 31, 2012 at 6:45 PM
  • Banks, News

    For A Bank, Bank of America Has A Pretty Loose Definition Of The Word “Cash”

    You can’t argue with this: Last year, the cash portion of bonuses was paid entirely in cash. Well glad that’s cleared up then! Anyway the actual story is not complete nonsense: Bank of America told senior bankers this week that the cash portion of investment-bank bonuses, the part that is payable immediately, will be paid […]

    / Jan 25, 2012 at 6:51 PM
  • News

    Bonus Watch ’11: Credit Suisse

    A couple weeks back, a report circulated that Wall Street banks were considering freezing compensation for junior employees. The firms were hesitating, however, supposedly on account of the backlash they feared would occur from failing to keep “potential future stars…engaged and happy.” Yes, they were terrified at the consequences of how their junior mistmakers would […]

    / Jan 23, 2012 at 1:58 PM
  • Banks, News

    Goldman Sachs Now Paying Employees For A Full Year Of Work

    I know I’ve said that the Jamie & Doug in the Morning Show is the best call-in program in finance, given Jamie Dimon’s reliably amusing anti-regulation rant, but the true connoisseur should also really get a kick out of David Viniar’s calmer, wonkier, more NPR-appropriate chat. I certainly do. We’ll maybe have more to say […]

    / Jan 18, 2012 at 12:26 PM
  • News

    Bonus Watch ’12: JPMorgan

    The take-away here is put in for that transfer to Brazil? From the front lines:

    / Jan 18, 2012 at 11:13 AM
  • Banks, News

    Your Comp May Be Down This Year, But At Least You’ll Have The Satisfaction Of Annoying A Random Shareholder Activist

    Hey, so, if you work at a bank, you may have heard about this, not sure, but your comp will be down. Just a bit. Unless you’re a junior mistmaker Chez Dimon. But otherwise, yeah. Down. Another thing you may be less aware of is that some people are actually not so unhappy about that. […]

    / Jan 12, 2012 at 4:50 PM
  • News

    Report: Trembling In Fear, Wall Street Banks Want To Make Sure They’ve Got Each Others’ Backs Before Invoking The Wrath Of 22 Year-Old Junior Mistmakers

    As you may have heard, bonus season this year is going to be a bit tricky, on account of the fact that Wall Street banks didn’t make much in the way of cash in 2011. While paying some seniors staff zero dollars is being considered, it still may not be enough to pick up the […]

    / Jan 10, 2012 at 12:54 PM
  • News

    On The Bright Side, Does This Mean That Banks Did An Awesome Job Of Managing Risk?

    A story that is told about banks is this: Bankers are paid to maximize short-term results and screw the risks. All they care about is this-period earnings. They dance until the music stops. (Then they sue.) In this story, banker pay drives risk and volatility and other terrible things. A counter-narrative that sometimes floats around […]

    / Jan 9, 2012 at 2:23 PM
  • News

    UBS Raises Base By For (Some) Employees

    Over the past year or so, a lot of people have chosen to voluntarily leave UBS, which may have something to do with the fact that people would like to get paid. While a handful of marquee names (within the industry) have been lured with big checks, many senior bankers have heard nary a peep […]

    / Dec 14, 2011 at 6:37 PM
  • News

    Maybe Bank Stocks Are Down YTD Because That’s How Bankers Want It?

    We’ve talked before about the theory that paying investment bankers in stock gives them an incentive to maximize the volatility of their businesses, which is a thing that some people don’t want so much. This starts from the notion that in a 10 or 20 or 30:1 levered bank or broker-dealer or futures merchant, the […]

    / Dec 5, 2011 at 5:40 PM
  • Banks, News

    NY Fed Researchers Want To Make You Mark Your Potential Bonus Clawback To Market

    The Fed has three basic functions: central banking, bank regulation, and calling down police brutality on Occupy Wall Street protesters. While the first function is getting all the attention today, the New York Fed’s blog is spending some time on the second. Specifically, they’re trying to figure out how bankers should get paid. Optimal design […]

    / Nov 30, 2011 at 11:16 AM
  • Opinions

    Guy Who Used Company Funds To Throw Wife Birthday Party Featuring Vodka-Pissing Ice Sculptures And Fireworks Made Out Of Breasts Morally Offended By Corporate Greed

    Remember Dennis Kozlowski? Bald guy, about yay* high? Actually kind of cherubic-looking, in that you could see him playing Cupid in the school play? Used to run this company called Tyco until he was sentenced to 8 1/3 to 25 years in prison? Anyway, quick story about Big D is that the reasons he’s in […]

    / Oct 21, 2011 at 2:24 PM
  • News

    London-Based Goldman Sachs Employees Learn Art Of Reading The Fine Print

    Goldman Sachs International has triggered a clause inserted into the employment contracts of a group of its London-based investment bankers in mid-2009 that will result in them having to take a pay cut, Financial News has learned. A number of staff across the investment bank’s European division, which is based in London, have been told […]

    / Aug 25, 2011 at 9:03 AM
  • News

    So Hot Right Now: Risk Officers

    In 2010, the year he was appointed Bank of America’s Chief Risk Officer, Bruce Thomson’s compensation topped $11 million, making him the highest paid executive at the firm (CEO Brian Moynihan, by comparison, received $1.94 million and former Countrywide CEO-cum-BAC in-house cocktail waitress took home $17,509 in tips**). Does Thomson’s massive package make him stand […]

    / Jul 11, 2011 at 2:44 PM
  • News

    Comp Watch ’11: UBS Throws Employees A Bone

    As you may have heard, lots of people have been leaving UBS lately, which may have something to do with the fact that people would like to get paid. While a handful of marquee names (within the industry) have been lured with big checks, many senior bankers have heard nary a peep re bonuses in […]

    / Jun 2, 2011 at 8:42 AM

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