Reduced bonuses - and they mean you.../ No Wonder Nobody Saw This Coming......
Is there still anybody left who thinks investment banker are living in the real world. After reading this report about the folks in London it should be no surprise why nobody saw the obvious .......The coming round of layoffs will probably be a rude awakening for some of the guys...
Die nachfolgenden Selbsteinschätzung der Bänker aus London in Form der Gehaltsvorstellungen erklärt wohl auch warum kaum einer das aktuelle Debakel hat kommen sehen. Die sind wohl so weit von der Realität entfernt das die kommende Entlassungswelle die meisten wohl überraschen dürfte....
Rude Awakening
Reduced bonuses - and they mean you / FT Alphaville
Look you poor deluded souls out there. When the powers-that-be are spinning their line about it being a tough time in banking, or opining that next year may be difficult, they are in fact talking to you. When they say that everyone will have to play a role in getting through this challenging time, they are telling you that you’re going to get paid less. Not the bloke down the corridor, who left early last Thursday and whose timesheet regularly comes in shy of a three-figure working week. YOU.
We mention this because there is some evidence that people aren’t listening to the latest round of expectations management. Everyone just assumes they’re talking about the other guy.
CitiPanel, a specialist in survey of financial markets, conducted their survey of City financial types in November - well into the credit squeeze, the write-downs and the pruning of staff numbers by the big banks. So there is no excuse for this level of denial.
A whopping 63 per cent of respondents think their total compensation will rise for 2007 to 2008. Only 7 per cent admitted to believing it will fall (and they’re probably the ones in structured finance who are praying merely that they’ll hold onto a job at all).
Moreover, 42 per cent of the City workers surveyed are expecting a promotion - despite the fact that 56 per cent have already been promoted in the last two years. And yet 37 per cent are unaware of what is required internally to move up a grade in the organisation. But they’re rock stars though - they just know they are.
On the back of a bumper 2006, now set as the base level for 2007/08, almost a third of those surveyed are expecting a rise in total pay of 6 to 10 per cent.
Expect some dire predictions and sterner words from your glorious leaders to arrive very soon
Die nachfolgenden Selbsteinschätzung der Bänker aus London in Form der Gehaltsvorstellungen erklärt wohl auch warum kaum einer das aktuelle Debakel hat kommen sehen. Die sind wohl so weit von der Realität entfernt das die kommende Entlassungswelle die meisten wohl überraschen dürfte....
Rude Awakening
Reduced bonuses - and they mean you / FT Alphaville
Look you poor deluded souls out there. When the powers-that-be are spinning their line about it being a tough time in banking, or opining that next year may be difficult, they are in fact talking to you. When they say that everyone will have to play a role in getting through this challenging time, they are telling you that you’re going to get paid less. Not the bloke down the corridor, who left early last Thursday and whose timesheet regularly comes in shy of a three-figure working week. YOU.
We mention this because there is some evidence that people aren’t listening to the latest round of expectations management. Everyone just assumes they’re talking about the other guy.
CitiPanel, a specialist in survey of financial markets, conducted their survey of City financial types in November - well into the credit squeeze, the write-downs and the pruning of staff numbers by the big banks. So there is no excuse for this level of denial.
A whopping 63 per cent of respondents think their total compensation will rise for 2007 to 2008. Only 7 per cent admitted to believing it will fall (and they’re probably the ones in structured finance who are praying merely that they’ll hold onto a job at all).
Moreover, 42 per cent of the City workers surveyed are expecting a promotion - despite the fact that 56 per cent have already been promoted in the last two years. And yet 37 per cent are unaware of what is required internally to move up a grade in the organisation. But they’re rock stars though - they just know they are.
On the back of a bumper 2006, now set as the base level for 2007/08, almost a third of those surveyed are expecting a rise in total pay of 6 to 10 per cent.
Expect some dire predictions and sterner words from your glorious leaders to arrive very soon
Labels: denial, investmentbank, wall street finest
posted by jmf at 11:11 PM
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9 Comments:
And it couldn't happen to a nicer bunch of guys...
:-)
I would like to a similar survey for the boys on Wall Street.
I assume that maybe for the fisrt time in history they are closer to mother earth than the rest....
Hi jmf,
Wall Street bonuses exceed the entire budgets of several states put together. They got theirs, any pain will be felt by the people who didn't participate in the housing fraud bubble first. People are stupid, bring on the pain!
No moderation, woohoo!
Moin Edgar,
the spam attacks (30-40) per day have stopped so i could turn down the moderation.
Lets hope they will stay away
"bring on the pain"
Agree 100 percent!
No wonder Citi workers are optimistics, if companies like Northern Rock can afford bonuses why shouldn't others? See: "Northern Rock owes the taxpayer £30billion but is lavishing pay rises and bonuses on staff" at http://www.dailymail.co.uk/pages/live/articles/news/news.html?in_article_id=499465&in_page_id=1770
Thanks Jarin,
WOW!
The extra cash is in part a reward for the "challenging times and heavy demands" that have been placed upon staff because of the recent turmoil.
The total award for an average employee earning £25,000 would leave them £1,700 better off.
But the package is awarded to all staff up to and including assistant directors.
Their salary can range up to £100,000. At the highest level this could mean a total bonus package of £6,200.
Northern Rock... where employees are rewarded for incompetence. hmmm... sounds like the U.S. government.
the government is a creditor to northern rock, not a shareholder, so i'm guessing it can't say or do anything about these pay rises...what a mess they've made here. if i was running northern rock, i'd probably pay out bonuses as well to keep staff happy...£30bn down already, what's a little more :)
and it's strange, but although everything you reads points to this year being a disaster for pretty much most of the banks, i don't get the impression either that bonuses will be down that much. although there will DEFINITELY be a decent amount of lay-offs at the time bonuses are paid (and i'm sure those guys will get zero's), as most places seem to want to get headcount down.
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