Lloyd Blankfein is contrite on behalf of his fellow bankers and has a few suggestions for making amends. He would like senior people to be paid mostly in equity (although junior people can be mostly paid in cash) deferred over a three year period. He would like clawbacks. He would like pay to relate to the firm's performance as well as to an individual's P&L. He would like senior bankers to be deprived of their equity until retirement. But most of all, he would like multi-year bonus guarantees to be equated with crack or crystal meth, and banned entirely.
Mr. Blankfein has said much of this stuff before. But as The Telegraph points out, the Sarko-style rejection of multi-year guarantees is a new departure.
The Epicurean Dealmaker offers an interesting insight into the motivation behind it. Goldman, he points, out, never paid multi-year guarantees in the first place. This is because it nurtures senior talent internally and has little need of recruiting outsiders. Instead, such guarantees are typically restricted to rivals seeking to poach out of Goldman. Banning them would therefore suit Lloyd down to the ground.
Mr Blankfein - like any good banker - was just talking his book. (Financial Times)
Translating Blankfein's bonus speech. (DealJournal)
Dutch pay code calls for 'meticulous, restrained and long-term remuneration policy,' resists caps. (Financial Times)
These Dutch banks never paid bonuses in the first place. (Fintag)
Star trader joins Brevan Howard. (Alphaville)
BofA hires David Ross from Deutsche as head of European leveraged finance capital markets. (Forbes)
BofA Merrill hires a life sciences banker from Credit Suisse. (CNN)
Piper Jaffray adds six people to its European sales and research team. (Financial News)
BarCap to build in prime brokerage. (Financial News)
Morgan Stanley hires Hugh Thomas as MD for Asia Pac investment banking. (Wall Street Journal)
Morgan Stanley head of investment banking in Dubai retires, 'not suited to industry.' (Financial Times)
Tall people are happier and richer than short ones. (Bloomberg)
The mounting dishes of congealed spare ribs in Dick Fuld's office signalled that something was wrong. (The Times)
Goldman banker irritates neighbours with loud music large ratio of topless women to clothed men. (The Deal)
"I look forward immensely to never having to attend an event in which Our Beloved Leaders stand up and tell us we've massively exceeded budget, so in reward we get no bonuses and instead we get the treat of listening to Coldplay while quotes from the greatest leaders of our times are played across a screen." (Evening Standard)
World's most successful dropouts. (Clusterstock)