Sept 20 Jefferies Group Inc executives
said on Thursday the investment bank aimed to pay less of its
revenue to employees over the next two years but will not down
to the 50 percent ratio that many industry peers target.
"We have obviously a long way to go from where we are to
where we need to get," Chief Executive Richard Handler said on a
conference call with analysts to discuss the firm's fiscal
Jefferies paid out 59.6 percent of its net revenue in
compensation and benefits last quarter. Handler said the ratio
will come down as revenues rise with better market conditions,
as employees become more productive and as retention bonuses
promised to woo talent in recent years wind down.
On the call, executives said market activity in September
has improved because of actions by the U.S. Federal Reserve and
signs that the European debt crisis is closer to being resolved.
They also said a potential Moody's downgrade will not lead
to significant collateral calls because Jefferies does not have
meaningful exposure to over-the-counter derivatives, and that
the bank does not need to add deposits to its funding model.