Firms noodling with their compensation policies are darned if they do and darned if they don't.
A huge union (the American Federation of State, County and Municipal Employees) is criticizing Citigroup for plans to shrink bonuses and raise salaries, just like many of the big banks. They note that salaries are not tied to performance as directly as bonuses.
It's fairly amazing that this point hasn't been made more often in all of the jawing about compensation that has gone on in recent weeks. No doubt, a lot of bonuses are tied to some pretty flimsy targets, but paychecks just require you to show up.
Meanwhile, Kerry Sulkowicz, a professor of psychiatry at NYU who advises CEOs on corporate culture, says boosting salaries is "short-term thinking about a longer-term problem."
"If you look a few years out, it's going to be hard to roll back these inflated salaries," Sulkowicz told WSJ's Deal Journal this week.
Your Paycheck Made Public
In a 5-0 vote, the SEC came closer Wednesday to requiring pay-discloser for more junior employees at public companies. And the agency wants more people to see them. Chair Mary Schapiro said current proxy statements "are in danger of becoming unreadable." (WSJ) Meanwhile, the Center on Executive Compensation wasn't all that excited about it. (ExecComp.org)
Bloody England
Jobs cuts at British banks have passed the 55,000 mark, though slightly more than half of the pink slips went to workers outside of the U.K. (Bloomberg)
TrimmING
ING Groep NV said it will cut 800 employees over the next three years as it trims its insurance business. The announcement came as the firm missed its earnings projections. (WSJ)
Japanese Monster
Nomura Holdings just keeps growing. The Japanese brokerage said that it will buy Citigroup's Japanese trust banking unit for $196 million. Some 107 employees are in the balance. (Bloomberg)
Mid-Sized Plus
We detailed hiring by Jefferies Group Inc. a few days ago. (FINS) Turns out, the bullish i-bank has added 200 people this year and is still swelling. (TheDeal)
Review of Reviews
A former Fortune 500 HR executive says companies should ditch the formal yearly performance-review. It wastes precious time and everybody knows who's doing a good job already. (BW)
In the Dark of Night
The graveyard shift is coming to the white-collar working world, including trading desks. The off-hours provides a sort of finance zen, devoid of white noise and ringing phones. (FT)
Four Down; 14 to Go
The fourth installment of Todd Harrison's trader's memoirs are up at MarketWatch. This one, which recounts 1992, has some resonance. (MW)