Lunchtime Links: Yes, but Goldman never paid multi-year guarantees anyway

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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)

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These Dutch banks never paid bonuses in the first place. (Fintag)

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BofA Merrill hires a life sciences banker from Credit Suisse. (CNN)

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World's most successful dropouts. (Clusterstock)

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