eFinancialCareers

UBS’ plan to link bankers’ payouts to returns on capital is likely to hammer bonuses lower than ever. Even worse, it may well catch on. UBS announced the new bonus arrangements today, along with its quarterly results. In the words of the Financial Times, ‘compensation in the three distinct operations of equities, investment banking and fixed income, currencies and commodities (FICC) will be measured by each individual operation’s return on capital.’ We... Read more

Human beings are masters of self-delusion. Given the right circumstances, for example, it’s possible to convince oneself that consuming two bars of chocolate in one morning won’t make you fat, or that being good friends with your boss means you won’t get fired. While I cling to the former delusion, it seems plenty of bankers are reaching for the latter. On a damp evening recently at a rooftop drinking venue near Bank,... Read more

You are, quite naturally, indispensable. You know it, your team knows it, your boss knows it, and your clients are totally convinced of it – given the choice of dealing with you or Warren Buffett they’d choose you every time. But while you spend two weeks bronzing yourself on the beaches of Mustique, your uniqueness will be put to the test. That eager subordinate will have the opportunity to inveigle... Read more

If you’re one of the many thousands of people who’ve been laid off in the City of London this year, one thing’s for certain: you won’t be getting a bonus. While this obviously has grave disadvantages for your personal solvency, it also means that if a bank wants to hire you it won’t have to buy you out. And as the year goes on, this may work to your advantage.... Read more

Banks aren’t in the business of philanthropy. Investment bankers are paid generously because they make big money for their employers: in 2006 profits per head in investment banking were 26 times higher than in the average industry, according to McKinsey. With profits now on a downwards trajectory, pay will clearly fall in 2008. The real question is when it will bounce back up. The CEBR is optimistically predicting big... Read more

After this week's set of results, which bank would you rather work for? Not Morgan Stanley, which saw its profits fall 7% after unexpectedly high losses on trading structured credit products. Not Bear Stearns, which suffered a precipitous 61% profit fall thanks to the revenue meltdown in its fixed income division and the collapse of two of its hedge funds. Not Deutsche Bank or Commerzbank, which both felt obliged to issue... Read more