UK
Bonus bonanza ignites golden gazumping
20 October 2006
“Golden hellos” and “golden handcuffs” are no longer enough: banks are resorting to “golden gazumping” to buyback their most desirable employees.
Robert Thesiger, chief executive of Morgan McKinley, which publishes its monthly London Employment Monitor today (Friday), says banks are increasingly offering buybacks to stop employees switching jobs before bonuses are paid out.
Thesiger says the main beneficiaries are in investment banking at vice president level and above. Finance and product control pros can also command buyouts. Juniors, sadly, cannot.
Banks are offering to buyout 100% of the bonuses expected, says Thesiger. He adds that bonuses are likely to be up at least 10% on last year.
Morgan McKinley’s latest employment monitor suggests there were around 1,800 more jobs than candidates in the City employment market in September, up from an excess of 800 last year.
