TV Stars, Sports Heroes and, Um, Bankers Exposed
As the Times points out this morning, Katie Couric, Chipper Jones and JP Morgan banker James Lee all have something in common: Their pay packages may soon be open to public scrutiny under the SEC’s proposed compensation disclosure reforms:
Current rules require that companies disclose the compensation of the chief executive and the next four highest-paid executives in management. The new rule, which is expected to be adopted in a few months, will require companies to disclose the pay, severance, bonus, stock and option grants, and retirement packages of the chief executive, the chief financial officer, the next three highest paid executives - and as many as three other employees who receive more than any of the first five.
The proposal permits companies to omit the identity of any the three highly compensated employees and simply list their job titles. But it is likely to sweep in stars like Ms. Couric, Mr. Jones and Mr. Lee as well as highly successful bond traders, top salesmen, studio heads, financiers and athletes.
Look Who Is Making the Most [NY Times]
Sex Discrimination Case Making Waves in London
A 47-year-old female former head od asset and liability management at HBOS Treasury Services is making news in London for suing her old firm for wrongful dismissal and gender discrimination. If this were in the States, it wouldn’t be big news. But in London, however, this type of thing is much rarer. The woman, who reportedly earned more than a million dollars a year, is claiming almost $20 million in damages.
City Firm Faces $19.5m Gender Claim [Here Is The City]
Citigroup Locks the Door and Throws Away the Key
Upping the ante on Morgan Stanley and other firms that have stiffened their notice periods recently, Citigroup introduced a new policy requiring investment bankers to give a 50-day notice before quitting--or risk losing their bonuses. Managing Directors are subject to an even harsher 75-day waiting period. “It’s unusual,” said Gary Goldstein, chairman and chief executive officer of New York-based Whitney Group, an executive- recruitment firm that specializes in financial services. “Not many firms have a clawback policy on bonuses.” Maybe they’ll start to now that the genie’s out of the bottle.
Citigroup Requires Bankers to Give 50-Day Notice [Bloomberg]
Wall Street Bonuses Good News for Everyone
In a refreshing change from the typical jealous whinings about how much money Wall Streeters are raking in this year, Bloomberg columnist David Pauly takes a more positive view of the bonuses, focusing on that Econ 101 concept: The Multiplier Effect. Noting that each new job on Wall Street creates three more jobs in the city and suburbs, Healy writes:
Investment bankers and currency traders with bolstered bank accounts won’t hesitate to spend $2 million or $3 million for a New York apartment, enriching the sellers. Those deals also will provide real estate saleswomen with nifty commissions, and many will immediately go to Saks Fifth Avenue and splurge on a new wardrobe. Saks may even be able to hire a few new sales people. Newly endowed stock-and-bond salesmen will also be inclined to be more generous when they tip their doormen and their cab drivers or when they get calls from charities.
Bonuses Reverberate in New York [Bloomberg]
How You Lookin’, Veeps?
While we were soaking up the sun, a reader with the handle Anony-pus shared the following comp ranges from “a major bulge bracket” New York investment bank:
1Y ASSOC: $200-280
2Y ASSOC: $250-375
3Y ASSOC: $350-455
1Y VP: Max of $550
2Y VP: Max of $650
3Y VP: Max of $775
4Y VP: Max of $900
Our tipster also gives the goods on salary ranges for Associates at three different banks. Read ‘em and weep, on the link…
Top Dogs Hogging the Bonus Pool [Under The Counter]
