Investment banks to overhaul pay
Major US and Swiss investment banks are considering paying higher salaries and lower bonuses to bankers based in Europe following a regulatory clampdown, the Financial Times said on Tuesday.india Updated: Dec 21, 2010 21:01 IST
Major US and Swiss investment banks are considering paying higher salaries and lower bonuses to bankers based in Europe following a regulatory clampdown, the Financial Times said on Tuesday.
The newspaper said the world’s biggest investment banks will overhaul their pay structures to differentiate between bankers based in Europe and those who work elsewhere, to make sure they comply with new rules issued by the Committee of European Banking Supervisors, the pan-EU regulator. “We’re going to have to pay people differently in different parts of the world,” the newspaper quoted one unnamed top US banker as saying.
“There will be higher salaries for people in the UK, but lower bonuses. In the US, bonuses will be slightly higher,” he added.
The FT also quoted an European banker as saying “politicians are naive if they think we will impose EU rules on a global basis”.
The CEBS guidelines, which apply from January 2011 and will cover the 2010 bonus round, set a cap of 20% on total pay on cash bonuses at banks in the EU and are seen as being more stringent than the set of principles world leaders at the Group of 20 countries agreed to introduce. The FT said JPMorgan , Goldman Sachs , UBS and Credit Suisse are working on plans to restructure packages differently for EU staff.