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Some banking sense at last


Benjamin

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The FSA has been heavily involved in the renumeration guidelines for banks this year. So all banks are actually complying with the structure. I think the banks needed an external regulatory agency to create a level playing field. All banks want to keep their staff from moving, so a level playing field helps. So it is not just Barclays, but all banks in the UK/US. Not sure about Europe?

Incedently, it is the percentage being held back whicih is larger than normal, not the practise of doing so. Most banks in the world have held back equity and cash portions of bonuses for many many years hence the fact that bankers really did suffer from the banks mistakes because their share holdings, which they couldn't sell have in some case lost 90% of their value. Lehmans always held back 60% for 5 years, so employees of Lehmans lost everything that had been deferred. Typical hold backs have been between 35% and 60% of the total bonus. This year it is as much as 90/95% which will be distributed over 3 years I believe.

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