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Role-Based Pay Watch '14: Goldman Sachs

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Goldman Europe sees your bonus caps and raises you this:

To navigate bonus caps in Europe, Goldman Sachs will offer a new kind of pay class for bankers in Britain and on the Continent, a person briefed on the company’s plans said. Call it the third way of pay. Starting this year, certain Goldman employees will earn a salary, a bonus and some “role-based pay.” It may be paid monthly or divided, with some paid monthly and some accruing to be handed out at the end of the year. The new type of pay will not be used when tallying pension contributions. The bank may be able to claw some of it back, and it can change from year to year. But it will have the effect of driving up base salaries...Role-based pay, which Barclays also plans to use, is a response to bonus caps passed by the European Commission for employees unceremoniously labeled “code staff.” Code staff includes those engaged in risk-taking and in control functions, senior managers and employees who make over 500,000 pounds ($820,000). Starting in 2014, bonuses for code staff are limited to 100 percent of an employee’s fixed salary, or two times salary if shareholders approve it.

For Goldman in Europe, a 3rd Way to Get Paid [Dealbook]


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