Bank Pay Rules in U.S. Seen Boosting Salaries, Slowing Hires
The Bloomberg article, "Bank Pay Rules in U.S. Seen Boosting Salaries, Slowing Hires" quotes Russell Reynolds Associates' Rebecca Glasman about changes in U.S. bank compensation structures. The article is excerpted below.
Bankers trying to determine if their paychecks would be subject to a new set of U.S. rules may find that the issue is more about how they’re paid -- rather than how much.
Bigger salaries and smaller bonuses are in store for some senior officials, dealmakers and traders at the largest U.S. banks if the proposals intended to curb excessive risk-taking take effect, executive recruiters say. The plan released last week would require top employees to wait at least four years to collect most performance-based pay and force firms to set a seven-year period under which they could reclaim bonuses from those who take inappropriate risks.
“You didn’t see a mass exodus out of the European banks as a result of these types of changed compensation structures,” said Rebecca Glasman, a recruiter at Russell Reynolds Associates. “I would not expect a mass exodus on the U.S. side.”
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