RBS disintegration date set for June
As a headhunter graphically (and possibly hyperbolically) put it last week, "RBS is being ripped to shreds" by rivals in pursuit of the very good people working in its rates and FX divisions.
RBS people are certainly leaving. Morgan Stanley and Credit Suisse have both hired from it this week. Steve Ashley and Chris Fleming left for Nomura in February, allegedly along with around six other members of their teams.
However, the real shredding of RBS may not happen for a few more months yet.
In June this year, RBS's investment bankers are set to receive deferred payments equivalent to one year's bonus.
This is because, according to headhunters, RBS bonuses for 2008 were 100% deferred, with 50% paid in June 2010 and a further 25% to be paid in June 2011 and June 2012. Equally, 50% of 2009's bonus is being paid in paper which is convertible into cash in June 2010.
As a result, many RBS people are thought to be hanging on until the June payday.
In the meantime, things are looking a little better for the state owned bank. Shares moved sharply higher yesterday, and its hired a new head of FIG (although admittedly only from Icelandic bank Straumur-Burdaras).
Despite the difficulties faced by their employer, one headhunter says RBS staff are surprisingly loyal, and that many may, in fact, still be there in July: "In rates and credit they're very good and loads of people will want to buy them out. But they're also incredibly loyal, and quite happy - most people seem to have got paid fairly well."
