Goldman bankers said to be getting most of their bonuses in cash; CS bankers aren't
The line between the haves and the have nots in this year's bonus round can be drawn not just between the people with the six figure bonuses and those with 1.50, but between the people with the six figure bonuses who get them paid NOW and the people with the six figure bonuses who have to wait several years to access them.
It's becoming clear who falls into the latter category: Morgan Stanley bankers and Credit Suisse bankers.
It's also becoming clear who falls into the former category: Goldman Sachs bankers and Citigroup bankers.
As we reported earlier this week, Citi bankers are rumoured to be getting 70% of their bonuses in cash - even when they're earning in excess of 500k and are based in London. Rumour has it that Goldman's London employees are similarly liquid.
"A lot of it depends on quantum and level, but the EDs I've spoken to at Goldman who are on total comp of around $800k are getting 85% of their bonuses in cash now," alleges one corporate finance headhunter.
"I've heard that Goldman are paying 85% cash immediately," claims another headhunter in the corporate finance space.
Notably, the FSA says that anyone earning less than 500k in total compensation and receiving less than one third of this as a bonus, is exempt from its deferral rules. It's possible that Goldman is exploiting this clause. Higher deferrals are said to be in place for more senior staff.
Meanwhile, at BAML and Credit Suisse
By comparison, the Wall Street Journal says senior staff making more than $5m at Bank of America Merrill Lynch are getting 70% of their 2010 compensation in deferred stock and 30% in cash. Last year they only got 5% cash, so this is an improvement.
And headhunters say there's disgruntlement at Credit Suisse, where VP level traders are said to be getting 70%
deferrals and corporate financiers are said to be getting 55-60% deferrals. According to Dealbreaker, US equity research bonuses at CS are 0-$5k.
"I don't think people at Credit Suisse are very happy at all," one London fixed income headhunter tells us.
