PRLog (Press Release) – Feb 10, 2012 –
According to the Wall Street Journal, their bonuses are no longer going to be allowed to skyrocket to out of control levels. This is in direct response to the company’s net profit decline, which dropped 16% to £3 billion ($4.75 billion U.S.) in 2011.
Barclays isn’t the first financial firm to announce that it would cap, reduce or eliminate the bonuses for some or all of its employees. Earlier this week, the Montreal Gazette reported that Deutsche Bank planned to defer any part of an employee’s bonus that rises above £200,000 ($264,800 U.S.). Two weeks prior, Bloomberg reported that Bank of America planned to freeze base salary levels and bar some investment bankers from receiving a cash bonus above $150,000. (According to Bloomberg, Bank of America paid to investment bankers in 2009.) Things got so bad at UBS last year that Dealbreaker (http://dealbreaker.com/2011/10/bonuslayoffs-watch-11-ubs/) proclaimed, “If your employment with the Swiss bank falls in the investment bank, consider getting to keep your job this year’s bonus.”
If nothing else, this announcement could be looked at as a positive development in the aftermath of the crisis on Wall Street, which has caused a cornucopia of layoffs at a wide variety of financial firms. Barclays may reduce its compensation for investment bankers, but at least it didn’t decide to take them off payroll entirely.
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Source Article from http://www.prlog.org/11796073-wall-street-bonuses-arent-what-they-used-to-be.html
