Two-year guarantees for top staff at Lehman

25 September 2008

2 minute read

Two-year guarantees for top staff at Lehman

More colour is emerging on the nature of the package being offered by Nomura to Lehman staff in London - and it looks very generous indeed. According to a totally anonymous (and possibly spurious) commentator on an earlier article, senior Lehman staff moving across to the Japanese bank are being offered two-year guaranteed bonuses based on the packages they received in 2007.

Headhunters give credence to the rumours. Bonuses for 2008 will apparently be paid 70% in cash in April 2009, with the remaining 30% paid in cash in September. Bonuses for 2009 will apparently be paid in April 2010, with the expectation of a 60/40 cash stock split.

"Overall, the 2007 bonus pool is going to be matched for 2008 and 2009, and certain key individuals are being given an exact match for both years," says one equities headhunter. Another says MDs are being guaranteed their 2007 payout for both 2008 and 2009.

Nomura is also said to be extending its offer to some of Lehman's 600-strong fixed income team, who were left out of its purchase of the equities and investment banking units. Earlier, The Times reported that Lehman's asset management division is also attracting offers.

Less promisingly, it's rumoured that Nomura will also be making 30% of people in Lehman's equities and investment banking units redundant. Names apparently won't be finalised for a few weeks.

AUTHORSarah Butcher

Global Editor

Ro
Roberto
23 December 2008
You are all in a dreamy haze. What top people, have youi not figured that it is all been a scam. There is no meritocracy, just a bunch of lazy parasites who never worked a decent work's day since they were 20.
How much cash would a cash cow cash if a cash cow would cash cash??
Top people....
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th
thursday2
27 September 2008
Lucky those who are offered the remarkable bonus guarantees. ! where exactly does the Nomura Employment Unit( likely based in Uzbekistan or somewhere else that is close to the action) think that all the big hitters at Lehmans would have gone to. As one who is remarkably close to the action, I could have assured them that there are droves of redundant people on the streets, often of very good calibre who would jump at a job right now.Many of these do understand that initially they might have to join on a lower package than they were on before.Its simple supply and demand..much supply and liitle demand.But hey ...if Nomura wants to pay up..excellent..I need to sell a spacious house in Chiswick and I was worried about a dearth of buyers..seems my worries might be over
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ed
ed
27 September 2008
How will they earn these alleged bonuses??
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CW
CW Party
26 September 2008
Who cares about the aftermath! Break out the bubbly the party has a few more hours to go!
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Ha
Harry
26 September 2008
It's true, there will be significant bonuses paid to some but I'm afraid to say it will only be a very select few that hold the key relationships and hold the key information. Of course the Head Hunters will say that their is massive bonuses for all, they are hoping to attract as many of the ex Lehman guys to thier books as possible, an "introduction" of the candidate to Nomura or any other institution for that matter is in affect a lock down of that particular candidate for 6 months so that if Nomura should employ the individual any time over the next 6 months a fee is payable to the "introducing" Head Hunter, slightly more in depth than that but in principal that's the case. This is a world of Vultures and right now they are circling Canary Wharf just waiting for the banquet to begin, sadly there will be more to come, crazily, when it does another load of crazy bounuses will be paid to some. But!!, people need to wake up to that fact that even this will dry up soon. In the space of 2 weeks we have gone from a massive skills shortage to a skills Tsunami!!!, The aftermath will not be a pretty sight.
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