Nomura announced a raft of management changes yesterday. Some select ex-Lehman bankers were elevated to within the company ranks while others were left out in the cold on the eve of the expiration of retention bonus agreements that helped keep many former Lehman bankers with the bank. The timing of the move may spark departures.
The management reshuffle takes effect on April 1, the day after the retention bonus agreements forged with top former Lehman bankers are set to expire, which would free those bankers to jump ship.
The Tokyo-based bank offered handsome guaranteed bonus packages for up to 100 of the Lehman alums in an attempt to win and chain as many of the defunct bank's senior talent in the recruiting wars that followed its acquisition during the length of the agreements. The packages, some of which were offered for a two-year term, matched bonuses set at 2007 levels, a generous proposal extended at a time when the financial crisis was center stage. Nomura's fiscal year ends on March 31.
Nomura has yet to announce the fine print of its bonus pool for 2009 but it is unlikely there will a repeat offering of such rich guaranteed packages, which may tempt some employees to take flight to rival firms that are now on more stable ground. Nomura added an estimated 8,000 workers through its takeover of Lehman.
"Once you cross the line and did it for the first time people will come to ask 'when's the next time? Who will get it?" says Bruce Ellig, a compensation expert who advises corporate boards and the author of "The Complete Guide to Executive Compensation."
Nomura spokesperson Peter Truell declined to comment on details of this year's bonus pool and retention packages.
The absence of a guaranteed bonus may put more emphasis on factors such as long-term compensation and the employee's future role within the company, says Ellig.
The big ticket promotion in this week's flurry of changes was Naoki Matsuba, current global head of equities, taking on another platter of responsibilities with his move to chief executive of the Americas as the bank looks to build the region into its new profit powerhouse.
"Building out North America remains an absolute priority and that is demonstrated by the appointment of Naoki Matsuba," said Truell yesterday. Matsuba is already well-acquainted with the bank's U.S. operations from his current role, he added.
Matsuba has been working closely with director of U.S. equities Ciaran O'Kelly, who left his post as global equities head at BofA to join Nomura last summer.
Matsuba will share his responsibilities as global head of equities with Rachid Bouzouba who has been named co-head of the business. Bouzouba joined the Japanese firm after it acquired Lehman's European and Asian businesses in September 2008 and led the bank's push into European equities as head of equities for Europe, the Middle East and Africa.
Sigurbjorn Thorkelsson, the bank's head of equities for Asia-Pacific and who was not included in the latest round of promotions, resigned last week to join Barclays. Thorkelsson was regional head of equities at Lehman prior to its acquisition.
Other changes include Hiromasa Yamazaki, the current Global Markets Deputy CEO, will be appointed Global Markets CEO to oversee the division's operations, which include Global Equities, Global Fixed Income, and Asset Finance.
The current Global Markets CEO, Akira Maruyama, will become Deputy President of Nomura Securities with responsibilities for the public sector. He will also be appointed President and CEO of Nomura Institute of Capital Markets Research.
The bank is recruiting heavily in the U.S. to bump up its headcount to 2,000 by March 2011, up from 1,400.
Write to Yoree Koh