First the average Joe. Now the sophisticated investor. We wonder who will be next to be upset about compensation at banks.
Many shareholders at Credit Suisse and Barclays are not happy with those banks' remuneration plans, and they're not afraid to show it, Reuters reported. Around 32% of Credit Suisse investors voted against the bank's compensation packages for its top executives, while 27% did the same for Barclays. Both non-binding votes still passed.
"You should be ashamed of yourselves for taking so much money away from us," one shareholder said at the Credit Suisse meeting last Friday. "We are the owners of this bank, and you are our employees. We should be the ones who decide what you earn."
Barclays has already backtracked slightly from its plan to give Chief Executive Robert Diamond 15 million pounds for his work in 2011. The firm said Diamond will lose out on half of his deferred bonus unless the bank reaches some profitability objectives. That could amount to a loss of around 1.3 million pounds for him.
Shareholders may get their wish soon, though. A new report from Boston Consulting Group says investment banks will reduce the revenue they set aside for the compensation pool as a result of increasing regulation and weak results. Instead, they'll offer titles, education and unit rotation as a way to hold onto top performers. Anyone think that plan will work?
Learning to Negotiate (FINS)
Women need to buck up and just negotiate. Or else they'll lose out on top assignments, promotions and earnings down the line.
Holy Cats (LATimes)
Just a year before Lehman Brothers went bankrupt, top earners were bringing home tens of millions of dollars. Here are new figures fresh from the latest bankruptcy documents.
Possibly Overblown (Nomura)
Nomura was projected to cut thousands of staff as part of cost-saving measures, but that decrease hasn't materialized yet in its earnings. Headcount decreased by only 500 last quarter.
Learning to Decline (Globe and Mail)
It's not a crime to say no to something every once in a while. It's just a matter of phrasing it diplomatically to your boss if you're asked to do something when you've got too much on your plate.
Killing It (Bloomberg)
You'll know you've made it on Wall Street when you eat pizza for breakfast, burgers for lunch and steaks for dinner. All.The.Time.
Special Award (Business Insider)
CIT Group Chief Executive John Thain has just received a very special prize. No, not admission to Wall Street's notorious fraternity. He's been named Father of the Year.
Buzz Around the Office
Absurd Tweets Illustrated (BuzzFeed)
Combover eagles, bagel plants and hipster cats – in graphic detail.
List of the Day: Networking Without Trying
It's so easy, anyone can do it.
1. Talk to the person next to you on a plane.
2. Assume everyone is worth meeting.
3. Come up with topics other than the weather.