Regulators fleeing as they join bankers in grievances over pay
For months now, banks have been complaining both publicly and privately about how mandates on pay have caused undue turnover. Now, in a bit of irony, regulators that oversee big banks and have contributed to much of their perceived hardships are doing the same thing.
A new U.K. report has warned of massive staff turnover at two the country’s financial regulators, and said that more needs to be done to attract and retain top staffers. In 2013, staff turnover at the Financial Conduct Authority was nearly 10%. At the Prudential Regulation Authority, that number reached nearly 12%, with more than one-quarter of those who resigned deemed “high-performers,” according to the National Audit Office. More than one-third of FCA employees have fewer than two years of experience at the firm or its predecessor.
The report comes just weeks after the U.S. Commodity Futures Trading Commission blasted the Obama administration for its upcoming budget, which would provide the regulator with a maximum of $280 million, but likely less. “Our staff is on its knees, some reaching for the exit doors and others already having bailed,” CFTC Commissioner Bart Chilton said at the time.
If regulators are looking for someone to commiserate with, they don’t need to look too far. Several banks, particular those in the EU, have griped about losing their best talent due to pay constraints. Things are so bad at Barclays, the firm gave out bonus increases to U.S. investment bankers despite layoffs and poor overall results. Barclays said the number of resignations of senior staff in the U.S. doubled in 2013.
The bank felt it had no choice. Now, Barclays’ shareholders are being urged to vote against the re-election of the bank’s compensation committee chairman. They may even look to dial back previously announced pay packages.
Ready to Turn a Corner? (eFinancialCareers)
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Buzz Around the Office
To Be a Bald North Korean (NY Post)
North Korean men are now legally obligated to get the same haircut as Kim Jong Un. Previously, they could pick from 10 state-approved hairstyles.
Quote of the Day: ““In the year that shareholders had to put in 5.8 billion pounds by way of rights issue, most of that has left the bank in bonuses.” – the U.K.’s Local Authority and Pension Fund Forum on Barclays’ bonuses
