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PAY NEWSEuropean banks’ bonuses: all down, Deutsche down the most1 November 2007COMMENTSIt'll be interesting to see what the banks in trouble do. They wouldn't want to lose their best people to the Goldmans and hedge funds who are doing well out there, but at the same time they don't want to pay ludicrous bonuses when they're suffering huge losses. Read all comments »Average bonuses at Deutsche Bank look set to fall 22%; bonuses at UBS are liable to decline 10%; and those at Credit Suisse should slip 3.4%. Results from the three European banks that revealed their 3Q performance this week show all are set to reduce average bonus payouts for investment bankers this year compared to last. Compensation and benefits expenditure for their investment banking divisions for the year to date, averaged over the number of investment banking employees and rounded up for the full four quarters, also shows Deutsche as by far the best payer of the three. Assuming the fourth quarter doesn't go completely awry, the German bank is on track to pay its average i-banker €404,310 in 2007. Credit Suisse should pay €317,600. And UBS should pay a comparatively paltry €272k. Banks’ results also reveal disparities in their appetite for adding staff. Deutsche Bank has increased its investment banking headcount by a massive 24% in 2007; Credit Suisse has increased headcount 9%; and UBS has upped staff by a teeny weeny 2.4%.
COMMENTSanon, HR & Recruitment, Thu 01 Nov 07I don't understand how you can take press releases on the revenues from these banks, do a sloppy calculation and then make wild assumptions about what bonuses they will pay?
Bob Banker, Information Technology, Thu 01 Nov 07Do you make this stuff up or what? Honestly.... Add your comment »jonny D, Investment Banking / M & A, Thu 01 Nov 07I agree ...don't look to much into these figures and just wait and see. There are alot of wild speculation around at the moment and would take this one aswell with a 'pinch of salt' Add your comment »Crystal ball salesman, HR & Recruitment, Thu 01 Nov 07This is the time of year when I am often at my busiest, I can usually con a few people into parting with hard earned cash for a glass ball. Now despite the obvious fact that there is going to be less of it around this year (cash not balls- although could be fewer of those as well- remember the formula take redundancy number and multiply by 2( roughly)).
anon, Information Technology, Thu 01 Nov 07What are you talking about? How did you reach these figures? Add your comment »Sarah, Editor, eFinancialCareers, Thu 01 Nov 07As stated in the article, the figures come from banks' own 3Q results. They are derived from averaging compensation and benefits expenditure for the first nine months of the year by the number of people employed at the end of 3Q. Evidently this is not an indication that a particular person's bonus will be down. It is, however, a suggestion that the average bonus will fall.
me, Consultancy, Fri 02 Nov 07"They are derived from averaging compensation and benefits expenditure for the first nine months of the year by the number of people employed at the end of 3Q."
him, HR & Recruitment, Fri 02 Nov 07Sarah, in fairness, it's silly to argue that your numbers are anything more than the result of a pointless - if not sloppy - calculation. A bank obviously assigns its bonsues to those employees it wants to retain so your average payout calculation is at best speculative and at worst poor journalism. It's ok, Sarah. You just got a little too ambitious. Next time, just stick with reporting the actual news and don't try to apply your dodgy maths skills. Add your comment »Bob Banker, Information Technology, Fri 02 Nov 07Sarah - since you admit that the percentages are a ludicrously broad average, what is the point of the story?
Al, Derivatives, Mon 05 Nov 07It'll be interesting to see what the banks in trouble do. They wouldn't want to lose their best people to the Goldmans and hedge funds who are doing well out there, but at the same time they don't want to pay ludicrous bonuses when they're suffering huge losses. However they play it, it will not be an equilibrium outcome. Add your comment » |
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