Lunchtime Links: Why Goldman's London staff might deserve their $800k; the ex-Merrill prop trader employing 10 people to manage €50m
It's not totally new news that Goldman Sachs pays people in London a lot more than its people elsewhere: we pointed out that the average employee of Goldman Sachs International earns double the amount of the average employee at Goldman Sachs back in May 2010.
This discrepancy persists. Financial News today reports that Goldman Sachs International paid $820k per head last year (including salaries, bonuses, National Insurance, and pension contributions), versus $353k per person across the firm as a whole.
How can this be? FN suggests it might have something to do with a preponderance of people on expensive expat packages, but is at a loss to elucidate further. We suggest it might be merited on the basis of working hours: in London people are up with Asia and still in for America. Surely this alone merits a substantial premium in pay? Discuss.
Separately, a story has emerged illustrating the horror that awaits any former prop traders attempting to set up a hedge fund of their own. Mark Devonshire, the former head of Merrill's credit prop trading operation, decided to set up his own fund in 2009. Devonshire aspired to raise $300m. Three years later, he's finally launched - with a staff of 10 and €50m under management.
Goldman Sachs has one single 'New Markets Scholarship' offering 20k to someone studying an MBA at LBS. (Scholarship-sites)
Deutsche Bank has lost another trader to a hedge fund. (Business Insider)
Deutsche might yet eschew Anshu Jain in favour of a former executive from the car industry for its CEO. (Bloomberg)
There are four billionaires at Glencore. (BBC)
Ivan Glasenberg might make $10bn, but everyone will know what he looks like. (Telegraph)
Macquarie Group has been hiring investment bankers in New York. (PowerMoves)
Standard Chartered lost 800 people in the first quarter, but still wants to increase employees by 1,000 by the year end. (Bloomberg)
No bail for Sergey. (CNBC)
The FSA isn't keen on EU banks 'passporting' their way into the UK any more and doesn't like the fact that UBS uses its London office as a gateway into the EU. (WSJ)
Lucas van Praag: "Don't Blame Goldman For The Food Crisis, Blame The Middle Class." (Zero Hedge)
