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]
“Take It Slow, Joe”: That’s What She Said
The Journal reveals some more details about the plans of star banker Joseph Perella to launch his own firm. As reported last week, Perella and partner Terry Meguid have been luring talent away from Morgan Stanley recently. But don’t expect to see any action from the as-yet-unnamed firm just yet. Perella, who’s said he plans to have about 100 investment professionals working for him, is following the advice of Blackstone’s Pete Peterson to take it slow. And that’s just what he’s doing: May 1 is current targeted start date.
A Wall Street Star Goes Small--Again [Wall Street Journal]
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]
More Board Turnover at Beleaguered Morgan Stanley
Despite a stronger-than-expected fourth quarter and a big paycheck for the top dog, the mass exodus continues at Morgan Stanley, with another three board directors stepping down. The list: Miles Marsh, the lead outside director; Edward Brennan, the former chief executive of Sears, Roebuck & Co.; and John Madigan, former chief executive of Tribune Co. The departures are no big surprise: All three had served under former CEO Phil Purcell. Now only four Purcell-era directors remain from the group of 10 outside directors elected at the annual meeting in March. They are Laura D’Andrea Tyson, dean of the London Business School; Sir Howard Davies, a former top securities regulator in Britain; Robert Kidder, former chief executive officer of Borden Chemical Inc.; and Klaus Zumwinkel, chairman of the management board of Deutsche Post AG.
MS Loses 3 Directors in Latest Exodus [Wall Street Journal]
