Dec 11 Jefferies Group Inc is paying
employees their year-end bonuses in cash as the investment bank
tries to lure talent away from bigger rivals, according to a
Bloomberg News report.
Jefferies, which agreed last month to sell itself to
Leucadia National Corp, is also extending the amount of
time that employees who quit must wait before working for
competitors, said Bloomberg, which cited an internal memo signed
by Chief Executive Richard Handler and executive committee
Chairman Brian Friedman.
Jefferies spokesman Richard Khaleel declined to comment on
the matter. Handler said the memo was not meant to be shared
with the press.
The mid-size investment bank has been on a mission to
bolster its cadre of bankers and traders with lucrative
compensation packages, as larger competitors shrink their
workforces and face pay restrictions under new regulations.
Competitors including Goldman Sachs Group Inc and
Morgan Stanley have capped payouts, put more of their
bonus awards into deferred stock and implemented clawbacks on
pay in recent years, in response to rules on pay aimed at
curbing risk-taking at large U.S. banks. The restrictions are
meant to align employees' incentives with shareholders over the
Jefferies' pay packages have come with fewer strings
attached. Last year, for instance, the company offered workers
the option of taking their bonuses in stock, or in cash at a 25