Maybe you're a Jefferies employee who thinks the light at the end of the tunnel is near. Bonus time's a' comin' and once you get yours, you're out of this place, you've told family and close friends. Just a couple more months and you can bust out. Break free. Live again. Just gotta wait for the money for last year's work to hit your account and bye-bye Jefferies, hello the first day of the rest of you life, right? WRONG! Jefferies is trying out something new this year and it's called you're not going anywhere.

Many of you will soon be meeting with your respective manager(s) regarding year-end discretionary compensation. If you are awarded discretionary compensation in respect of 2011, in many cases this will be comprised of cash and restricted stock (unless you previously elected to receive restricted cash in lieu of restricted stock). Our Board of Directors and the firm's Executive Committee have determined that all discretionary cash payments will be in the form of one-year restricted cash. This means that any 2011 discretionary cash payment you might receive will be required to be repaid to Jefferies should, the in the one year after you receive the restricted cash in lieu of restricted stock, you terminate your employment and join a competitor (separately, if you elected to receive restricted cash in lieu of restricted stock, that cash will be subject to 20 month clawbacks)...The reason we are moving to this form of cash award is straightforward. We are paying out a full compensation rate as a percentage of revenues (albeit revenues below our collective expectations), and the portion of our compensation that will be paid in cash is among the highest percentages of cash among all our competitors...We are all in this togther as partners and our overriding priority is to keep Jefferies highly fortified for the collective benefit of all our employees, shareholders, bondholders and clients.

Jefferies' New Pay Plan Includes Possible Bonus Clawbacks [FBN]