Most banks are opting for 'role based allowances' to sidestep the EU bonus cap. Bank of America Merrill Lynch, however, has decided to increase salaries and offer allowances. Sky News reported yesterday that the US bank will be increasing salaries for its UK-based 'code staff' by 20%, taking salaries of managing directors at the bank to to $500k (£305k). In addition to this, senior bankers at BAML will reportedly be paid bi-annual allowances entirely in cash up to total compensation of $5m.
In increasing salaries, BAML is following in the footsteps of UBS, which last year hiked some City of London salaries by 25%. It's not clear whether the salary increases are pensionable. By virtue of their inflexibility, they may encourage banks to make redundancies when cost cutting is required.
Separately, esteemed banking blogger The Epicurean Dealmaker has produced an epistle explaining why it is that young bankers work long hours and can't have their shifts divided into more manageable time-segments to be shared between multiple well-rested practitioners. Clients take a sadistic pleasure in the notion that the huge fees they're paying are putting young bankers to work twenty hours a say, says the TED. "They own you completely, at any time of day or night, for as long as they want to, and with complete and utter disregard for whatever may or may not be going on in your life, he claims. "Let me tell you something: I have never yet been on a deal where the client hasn’t chuckled in satisfaction, usually more than once, at the long hours and hard work the junior bankers on his deal are putting in. It is a standing joke for every client who engages my services. They expect it."
BofA said to cut bonuses for rates traders by 15%. (Bloomberg)
Citi is reassigning James Bardrick, co-head of corporate and investment banking for Europe, Middle East and Africa, as UK country officer after it slipped from 8th to 14th in fees earned in the country. (Financial Times)
Heidrick & Struggles has appointed an ex-Goldman partner as its CEO. (Financial Times)
Lloyds has committed to fill 2,000 of its 5,000 most senior roles with women by 2020. (Daily Mail)
Without deserting careers, a new wave of young bankers is starting nonprofits to help orphans, immigrants, veterans and students. (Bloomberg)
Antony Isaacs, previously head of equity capital markets in Europe at Australian bank Macquarie, has set up his own venture, ARI Advisers. (Financial News)
Barclays' Anthony Jenkins would have been entitled to a bonus of £2.7m, but he's given it up. (CityAm)
The real problem with Jamie Dimon’s pay raise. (HBR)
How to reduce digital eye strain.(CNN)