ABN AMRO bonuses suddenly look good

Not only are their chances of being turfed out by new owners fading, but ABN AMRO's bankers look like being paid unusually well this year.

It's all down to the fact that, in an attempt to stop people defecting during the merger (takeover) machinations, ABN guaranteed many of its bankers 2007 bonuses at least equivalent to those they received in 2006.

With this year's bonuses now looking to be lower than last year's, particularly in anything credit-related, ABN AMRO bankers are sitting tight - or at least, tighter than they might otherwise have done. "The people in fixed income at ABN AMRO are enjoying those guarantees the most right now," says David Korn, European managing partner at search firm Options Group.

"Some people at ABN AMRO are very well-placed," says another headhunter. "People who have been with the bank for 10 years are hoping for a big redundancy pay-off if the RBS deal goes ahead - and with their bonuses guaranteed at 2006 levels they're in a win-win situation, particularly given what's going on in the markets."

ABN's acquisition by Barclays Capital is thought to be increasingly unlikely following recent falls in the UK predator's share price. At the same time, a bid by a rival consortium led by Royal Bank of Scotland has been hit by rumours that consortium-member Fortis NV will struggle to make the €13bn rights issue it needs to finance the deal.

ABN's bonus largesse doesn't seem to be doing anything to stop the flow of staff out of its equities financing and prime brokerage area, however. One headhunter says the likes of Charlie Day and James Pugh, co-heads of the portfolio swaps desk, are among several who've quit - something that is unconfirmed by the bank.

Korn says most equities staff are expecting bonuses that are up 5-10% on last year anyway - making ABN's guarantee to match 2006 payouts less than exciting.