Collins Stewart maintains bonus pool as it starts hiring again
After cutting costs towards the end of last year and the first six months of 2009, Collins Stewart is hiring again, and has kept the bonus pot in line with last year in a bid to attract new staff.
The independent broker has inched back into the black again, posting a profit of 6.1m in the first half of 2009 compared to a loss of 2.5m in H2 last year.
In response to shrinking revenues in 2008, it pulled back from its "expansionary strategy" (or a possible challenge to the big boys) to focus on its core businesses - securities, advisory and wealth management - and cut staff numbers from 774 in October 2008 to 693 in March, most of these through the closure of its US broking operation.
It also tied 6m of its 2008 bonus pool to 2009 performance. While this policy is still in place, the bank admits it has "been necessary due to competitive pressures over the retention and recruitment of staff to maintain overall bonus levels in the first half of 2009 (as in the second half of 2008) above those previously anticipated."
And it's looking to add staff. Mark Brown, chief executive, says: "We are taking advantage of opportunities arising from market dislocation to strengthen our core businesses and reinforce our position as a leading independent financial advisory group."
Most of these will relate to the securities division, but it's also kick-started a convertible bonds team with the hire of Stuart Galvin from HSBC and Andrew Kilpatrick from UBS. Julian Smith, formerly of Dresdner, has also been recruited for the corporate broking team.
In the securities division, it's taken on Morten Singleton, Greg Lawless and Robin Savage from Oriel Securities, Blue Oar and KBS Peel Hunt respectively as analysts and Martin Francis from MF Global as a sales trader.
A fixed income credit trading team has also been recruited and it has added "a number of high-profile analysts from major Wall Street firms" for its US equity sales and trading division, as well as somebody to develop its fixed income capabilities state-side.
