They may not have made much money, and in fact comp was down, but almost all of whatever came in they gave back, unlike the cheap pricks at Banco Santander.
[Reuters via Heidi Moore]
Perhaps this would explain their celebratory mood come bonus day!
Related: Bonus Watch ’11: UBS’s Bonuses Were In The Pool
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Assuming the last quarter is an indication of the next three and- fingers crossed- nothing goes catastrophically wrong, JPMorgan employees may be looking at raises next year.
Bankers at J.P. Morgan, the investment banking unit of JPMorgan Chase (JPM), are in line for a 34% raise this year, if the bank keeps paying at its torrid first-quarter clip.The investment bank set aside $3.3 billion for compensating its 26,494 workers in the first quarter. That’s equivalent to $124,330 for the quarter and projects to $497,320 for the year.
[Fortune]
Article courtesy of Dealbreaker
Dimon’s $23 million compensation package included a $5 million cash bonus, his first since 2007, the New York-based company said today in a regulatory filing. His base salary remained at $1 million and his restricted stock payout increased 20 percent to $17 million. That helped boost total compensation by more than half from $15.2 million in 2009, according to the bank’s calculations. [Bloomberg]
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Oh sure, total compensation was up on average but cash bonuses took a nice hit. Want to explain to Lloyd Blankfein et al how they’re supposed to strip naked and roll around in a bunch of company stock?
The average New York City bonus declined by 9% last year, as banks and brokerages added workers and set aside less money for year-end payouts, according to a report released this afternoon by the office of the New York State Comptroller.
In total, Manhattan banks and brokerages handed out $20.8 billion in bonus payments for 2010, an 8% decline, according to the report. The average cash bonus on Wall Street fell to $128,530. That would mean the average cash payout in 2009 was $141,242, according to our calculations.
Comptroller Thomas P. DiNapoli said the drop in bonuses was driven regulatory reforms, specifically a greater share of compensation paid in salary or deferred. Total compensation actually increased by 6%, according to the report.
Smaller Bonuses On Wall Street In 2010 [FINS]
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Just concede it's possible.
While it’s not yet clear if people will be in a celebratory mood, UBS has just invited to New York and Stamford staff to get down in honor of bonus day.
“Numbers hitting. No base changes in equities, down 25pct from last year. Management just sent a note out that says “communication day receptions” for Securities employees in NYC and in Stamford.”
“Mood is, who wants to drink with the people who screwed this bank up?”
Now this doesn’t strike us necessarily fair- true, the concept of a “communication day reception” seem a bit odd and potentially salt in the wound-esque but let’s just wait and see what they’ve got planned before we judge. Maybe there’ll be an open bar. Maybe there’ll be a dunk tank. Maybe they’ll have every kind of chip you could ever want. Maybe Oswald Grübel and the board are going to dress up like Toblerone bars and do a choreographed dance. Maybe, once everyone assembles in the lobby, they’re going to announce a field trip to Beamers. And what will you say then? You’ll say thank you, UBS, this was very generous of you and I feel bad for being preemptively ungrateful! if you can speak with the scantily clad ass in your mouth. Think positive!
Related: Beamers Cafe: “Not Some Fly By Night Organization”
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It probably shouldn’t come as much of a shock that the employees of a business that’s shutting down will most likely not be receiving bonuses this year but we can still allow them their pain.
“Level laid off all the analysts and PM’s. The only people left are executive committee, technology, accounting, 3 traders, and 1 ops analyst, maybe a few admins/random people. What sucks is that many employees had part of their 2010 bonus “deferred” until June 30, and signed documents of some sort that basically indicated they might not get any of it if the fund isn’t around. Obviously the laid off won’t be getting that money but it’s unclear if anyone left will either. Apparently they money may have to go to paying for other obligations like rent and potential legal fees.”
Article courtesy of Dealbreaker
Employees will have to sit tight for another couple months.
FYI: Notification went out this morning from HR. Stated that “due to time required to ensure they meet compliance and regulatory requirement, bonus communication day is being pushed back to Feb16 with payment now in March.”
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Charlie Gasparino is hearing that senior bonuses at Citi this year will be paid out half in stock that vests in five years and half in cash that only 20 percent of which is immediately available (30% of the cash portion will supposedly be awarded in two years). For those who don’t know you’re supposed to stop pushing the Q-tip when there’s resistance who may be having trouble figuring out why some people wouldn’t be so happy about being paid in such a structure, Chaz’s source explains:
“Just do the math,” this person said. “You get a bonus of $1 million, just 20% of it you receive on the pay date. You’re left with $200,000 cash and half of that is taken in taxes. That’s why these guys are so pissed.”
Article courtesy of Dealbreaker
Confidential to James Gorman- you’ve got some very unhappy junior rainmakers on your hands.
Here is the bullshit way Morgan Stanley calculates a “15% cut” in bonus. It is actually a 15% cut in your total compensation. This totally screws the people that get paid most of their money in salary and hurts the higher paid people the least.
For example; a person that made 150,000 salary and 50,000 bonus under this method is cut to 170,000 total comp so cut the bonus from 50k to 20k (a 60% cut in the bonus) and even worse if they got a raise the previous year.
The person that made 250,000 and 750,000 for a 1,000,000 total comp would be cut to 850,000 so the bonus is 600,000 (only 20% less). If that is not bullshit, I don’t know what is.
Most people would be way better off if they cut just the bonus number even if it had to be a 30% or 40% cut at least the lower paid people would not be subsidizing the high bonus people.
So it is not “bonus” down 15% it is TOTAL COMPENSATION down 15%.
Article courtesy of Dealbreaker
First order of business: bonuses. Bobby’s been working on something he thinks you’re gonna love.
Bob Diamond will stamp his authority on Barclays next month, when the incoming chief executive announces a radical overhaul of the way it pays its top bankers as part of a broader strategic review that could see the group shed staff and put increased pressure on underperforming businesses. According to people close to the plans, Mr Diamond aims to use innovative bonds – so-called contingent convertibles, or cocos – to pay a large portion of the bonuses for more than 1,000 bankers, those ranked at managing director level and above.
Next up: layoffs.
Barclays is also planning to announce a broad-based review of its operations, pinpointing underperforming units and setting strict improvement targets. Mr Diamond was likely to extend an ongoing cost-cutting exercise at Barclays Capital, the investment banking unit, across the group, bankers said. If the scale of the BarCap cuts was replicated group-wide, it would mean more than 3,000 job losses.
Barclays To Unveil Radical Pay Overhaul [FT]
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