![]() The new “role-based pay” element - on top of base salary and variable bonuses - will be for employees occupying specific risk-taking roles. The bank’s earnings and revenues jumped in 2012 from 2011.Ībout $350 million of Goldman’s total salary bill for these bankers was paid in bonuses, or 5.2 times what it gave in fixed pay - jumping from a ratio of 2.2 times in 2011 - according to Reuters calculations.īanks are expected to increase fixed pay and reduce bonuses to meet the new rules, although Barclays BARC.L, HSBC HSBA.L and others are coming up with innovative ways to cope.īarclays plans to give its senior bankers additional monthly payments. Goldman Sachs paid its top 115 UK staff an average of $4.67 million (2.84 million pounds) each for 2012, an increase of three-quarters from the average for 2011 and the highest of the major banks. Major banks continued to reward their top risk-taking staff heavily on performance in bonuses for 2012, their regulatory disclosures have showed in the last few weeks. ![]() So while the EU curbs came into force this month, they will be applied first to bonuses for 2014 to be handed out early next year. ![]() Many blame their high levels for encouraging reckless risk-taking that led to the 2008/09 financial crisis and a series of mis-selling and misconduct scandals.īanks usually pay staff bonuses in January or February based on their performance the previous year. JPMorgan JPM.N, Goldman Sachs GS.N, Bank of America BAC.N, Barclays BARC.L and Credit Suisse CSGN.VX paid bonuses to leading staff which ranged from 3.3 to 5.4 times their fixed pay for 2012, according to data disclosed by the banks and Reuters calculations.īig changes will therefore have to be made to meet the European Union rules which cap bonuses at the same level as fixed pay, or double if the bank’s shareholders approve.īankers’ bonuses remain a hot topic among politicians and the public. People walk inside JP Morgan headquarters in New York, October 25, 2013.
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