Yesterday we told you Greg Tusar, head of electronic trading at Goldman Sachs, is leaving the investment bank after 13 years. Man Group, a hedge fund that has laid off lower-paid support staff in technology functions and elsewhere, has largely kept headcount in its investment management unit stable, despite an $837 million impairment charge.
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Plus, higher salaries could give banks less capital, the opposite of what regulators want.Īnother idea being discussed – according to FT – is the concept of a “rolling contract,” where salaries vary each year depending upon performance, essentially changing the definition of what a bonus is.īear Market, Bernanke and Communist China (eFinancialCareers)ĭouglas Coté, chief market strategist at ING Investment Management, is bearish on the market, and he wasn’t afraid to make his argument to a room full of traders this week. The more money that is given up front, the less that can be clawed back, or deferred and attached to performance metrics. The most obvious way is to increase base salaries, a move that, yet again, would create a major headache for regulators who are trying to make bankers more accountable. In addition, employers are reportedly actively hunting down ways to skirt the rules, should they go into effect, according to Financial Times. One, as eFC reported yesterday, the caps will have little impact on the majority of bankers, as most rarely receive bonuses that more than double their base salary. The rules are likely to affect senior-level employees making investment decisions at European lenders who are stationed outside of the EU – a situation that would likely create a nightmare for global banks and their employees, according to The Wall Street Journal.įortunately, bankers have two things going for them. Bonuses could rise to a maximum of 250% of salary with shareholder approval. If the preliminary rules are approved by EU member states and the European Parliament, bonuses will be capped at 100% of base salary starting in 2014. Now, banks are prepping to do what they do best: attempt to circumvent those rules. Preliminary European Union rules on bonus caps were approved, sending shockwaves across the global financial world. If you work in finance, Thursday was likely a bummer.
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