no soup for you
The German lender is proposing to raise the maximum bonus senior managers can receive to twice their fixed annual salary, double the current level. Deutsche Bank officials say the move is necessary so that the bank can comply with European rules on pay, while also competing for staff with U.S. rivals. They say that if the bonus increase is rejected, the bank would need to raise base salaries to retain top talent. But opposition to the proposals is mounting from shareholder groups who argue the payment is excessive and fosters improper behavior. Germany’s Schutzverein der Kapitalanleger, an organization of small shareholders, said it would vote against the proposal because it lifts the bonus cap indefinitely, rather than for a defined period subject to review. Another shareholder group, the Ethecon, said it plans to vote against Deutsche Bank’s proposal which “would further raise the already irresponsible and inhumane risk appetite level.” [WSJ]
Maybe some banks pay any old bonuses they want (despite continuing to lose money) in order to keep up with the Joneses, Goldmans, and JPMorgans of the world, but RBS isn’t going to be one of them! Not while it lives under the government’s house! Read more »
Mathew Martoma, the latest employee of Steven A. Cohen’s SAC Capital Advisors to face trial on insider trading charges, lost a bid on Friday to delay his trial, which is scheduled to start on January 6. Martoma’s lawyer, Roberto Braceras, told U.S. District Judge Paul Gardephe in New York that the conviction of SAC portfolio manager Michael Steinberg on Wednesday had ignited a new round of media stories that often mentioned Martoma, raising the possibility jurors could be tainted by the coverage. He asked for a two-week delay, adding that they needed the extra time to prepare for trial in light of several pending motions. But Gardephe said he had already postponed the trial from the autumn to January “extremely reluctantly,” adding that the intense media attention on SAC would likely continue. “The fact of the matter is, there is a piece of news about SAC nearly every day,” he said. [Reuters]
Unfortunately-timed cuts are said to have gone down this morning. Read more »
As you may have heard, the last several years have not been so hot for RBS. In the last 12 months alone, the bank beat expectation by posting “a bigger-than-estimated first quarter loss” (with a loss of 1.4 billion pounds for the first half), employees have gotten canned, management has already informed staff that 2011 bonuses will be less than 2010’s, you can’t say “ABN Amro” without getting tased, they’re still mopping up the mess from ToiletGate, they just got downgraded by Fitch, and the Queen is riding all their asses. What was left to look forward to? Not much at all but at least there was the annual Christmas party which, since 2008 has amounted to one bag of (fun size) chips per head. It wasn’t a lot but it was something and now? It’s gone.
RBS is canceling Christmas for its investment bankers this year as the government-owned lender tries to reduce costs.
Okay, so, no Christmas party seems a bit harsh but employees can still get into the holiday spirit with non-Christ-based soirées, right? WRONG! There will be no Halloween parties, no pre-Thanksgiving raves, no New Year’s bashes, no Beamer’s Appreciation Day on RBS’s watch. Read more »