Hedge funds may soon be hampered by new compensation rules that require them to pay no more than 50% in cash and to defer 40-60% of variable comp – something that is causing consternation in Mayfair – but this year at least, they’re more likely to hand out big bonuses.
Mercer has just released its financial services executive compensation survey for this year. Its findings aren’t restricted to the C-Suite, but include control functions, senior staff and the ever growing pool of people in ‘risk-taking positions’, namely those whose jobs could impact the firm’s risk profile.
Within the 67-page report the table below makes for most interesting reading - what the different business areas are doing with bonuses this year. 20% of hedge funds intend to increase bonuses by more than 20% this year, as do investment banks’ fixed income and equities divisions.
At the other end of the scale, investment banking divisions and prime brokers are more likely to shrink bonuses by more than 20%, and at least 15% of institutions intend to reduce bonuses for equities bankers by over 20%.
Commercial banking, private banking and asset management sectors appear to be the most stable when it comes to compensation.
Citigroup’s Corbat has been handed $11.5m (Bloomberg)
Citi executives will get 40% of pay in cash, 30% in deferred stock and 30% in performance shares (Financial Times)
Brussels is investigating a cartel of rate price manipulation (Telegraph)
Morgan Stanley’s chief operating officer, Susan Carroll, has died (Bloomberg)
For the eighth year in succession, there’s a proposal to split Jamie Dimon’s job (Times)
Daniel Keegan has been handed the reins at Citigroup’s US equities business (Bloomberg)
Swiss bank Reyl & Co is expanding in London (Financial Times)
BoA Merrill Lynch has named David Wood deputy head of its Australian investment bank (Wall Street Journal)
How to soften the blow of redundancy (Financial News)
No more bonuses for 20,000 HSBC retail bankers (Times)
HSBC shuts high profile hedge fund (Reuters)
J.P. Morgan has recruited seven private bankers in London (Financial Adviser)
84% of “white tuna” in the U.S. is actually escolar, which can be very nasty indeed (Quartz)
Dan Loeb’s high school year book is for sale on eBay (Dealbreaker)