As part of Reuters investment banking summit, Greenhill executives sat down to describe their unusual bonus practice: complete openness. Every managing director gets a memo detailing every other md's bonus. The link below gives you the full audio clip.
Greenhill has a novel approach to compensation. All of its managing directors know the size of all the other managing directors’ bonuses. They actually hand out a memo.
“It’s a strange policy but it works,” says Greenhill President Scott Bok ”I always joke that it makes us more productive than other firms, because at other firms you spend the whole month of January trying to figure out what the guy in the next office got paid. With us you can dispense with that, because you hand it out and there it is and now you can get back to work.”
That seems kind of disapointing. What's bonus season without the intrigue?
Audio - Do you know how big YOUR co-workers bonuses are? [Reuters via BankersBall]