Headhunter says private bankers should pay back salaries if they leave

A London headhunter says private bankers should be paid by way of a "forgivable loan" to ensure productivity and employee retention.

Mark Somers of London-based headhunting firm Somers Partnership advises that salaries are paid in the form of a loan for a specified number of years, and that for each year of service, a proportion of the amount to be repaid should be written off.

No money would be paid back for the period that the relationship manager stays with the employer, and the loan would only become payable if the employee leaves before the period of the forgivable loan - which can be set at any given number of years.

Somers presents his idea on the website Wealthbriefing.com. "The benefits of such a system are that it protects wealth managers to some extent from seeing high performing asset gatherers leaving after a short period after being hired. It also enables wealth managers to structure the initial package necessary to attract high performers," says Somers.

He says the practice is growing in the US and it's just a matter of time before it comes across to Europe. "If it's not more widely adopted here, then it should be."

Would such a loan offer garner your interest, or would you prefer a more flexible option?

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