No more golden hellos at VTB Capital, BNP Paribas is staying in Bahrain

Previously, we pointed to a rare bout of generosity in the investment banking sector as VTB Capital looked to bolster its Dubai-based team. Unfortunately, this may have been a mistake.

Instead, the bank has now insisted that the four equity traders it hired from Credit Suisse were lured without the need for 'golden hello' payments. VTB has something of a reputation for offering inducements to persuade investment bankers to join from larger international rivals.

Now that the bank's name is more established, this is no longer necessary, according to Bloomberg.

In fact, VTB has rolled out a new shared-based payment plan – involving clawbanks and deferrals - across all of its international operations after rules from the Financial Services Authority in the UK prompted it to do so in its London office.

Suffice to say, the lack of a buyout or golden hello when recruiting bankers in the Gulf is indicative of a new-found desire for job security over lucrative pay packets. VTB is one of the few investment banks still talking up expansion and appears to be a safer option.

Separately, in a rare piece of good news for Bahrain, BNP Paribas' head for the Middle East, Jean-Christophe Durand, has said that the bank will maintain its headquarters in the kingdom.

The French bank has already relocated some back office staff to Dubai, while rival Credit Agricole has moved out of the kingdom entirely and Societe Generale said last week that it was closing its private banking operation there.

BNP Paribas also increased headcount in its regional operation by 5% last year.