Wonderful news: Deutsche Bank is going to 'globalise' the effects of the UK's bonus tax. City-based Deutsche Bankers will have their tax pain mitigated by its dispersal across colleagues in New York and Asia.
So, who else can look forward to similar treatment?
According to headhunters, City-based staff at Goldman Sachs and BofA Merrill Lynch expect to be equally sheltered.
Lloyds has also indicated that it will be paying its average bonuses of 20-40k in full. Bob Diamond told BarCap employees not to fret, that they'd be paid "competitively" and that the tax is something the bank will "deal with." And BNP Paribas is rumoured to be contemplating increases in salary to help offset the tax.
There are outliers. One headhunter alleges that JPMorgan's London bankers expect to share the tax burden with the bank. JP Morgan declined to comment, but a senior insider there said this isn't exactly so: "No decision has been made as yet. A note has gone out from Jamie Dimon to all staff assuring them that he's looking at it very carefully and will do the right thing. But he hasn't said what the right thing is at this point."
Jon Terry, head of reward at PricewaterhouseCoopers, says the punitive impact of the tax depends on two things: how many people are covered by it at each organization; and how organizations structure their bonus pools.
Terry says banks where large amount of employees are excluded (because they have formulaic compensation policies, lots of guarantees, or lots of people not spending the bulk of their time on specific regulated activities) are more likely to share the tax pain globally. So too are banks where bonus pools are divided globally along product lines.
By comparison, banks with lots of employees caught by the tax and where bonus pools are UK or EMEA focused, are more likely to pass the pain on to staff.
We suspect that this applies particularly to RBS global banking and markets.