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Breakingviews: Backward bonuses

Thursday, January 09, 2014 - 03:20

Jan 9 - Breakingviews editors preview investment bank earnings due next week and discuss why stock awards from past years may cheer bankers more than payouts for 2013.

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It's a big investment banks reports. Last innings 2013 next week. And it doesn't seem like it's been the greatest year which means the things would get paid so much. Yeah exactly just judging by how the full court is gone and then extrapolating from. The first months of the year it may well be it but it's a slight adjustments the banks than they would at least the total compensation -- It's not that close to me so that's what which wasn't a great here that if you get the banks have been having. Great deal of money at least it was on a Mac team to commit billions of dollars in net income that -- -- that he could tell that he's pretty cool. They've been taking steps like Goldman and others to reduce costs and things like bonuses to increase for. And more troops are kind of getting their comp to revenue rates shoot down I -- it's still not. Well you know residential that the balance with the -- so let's get is a little more. Yeah -- -- yeah exactly yeah you don't way out of whack but it's not yet admits that some of them not mentioning Goldman Sachs is that this that a change these cheering the course of the get in the gulf and redundant but that was the last 42% of revenue. The columns must -- masters online if you making lists of its yes but it's not when you return that just hoping around. That covering the cost of capital right -- the saving grace here of course as you point out -- is the stock prices of the banks which have done. Phenomenally well when Galileo litters Belize soliciting a bank -- -- played as bad off often yet so I seriously -- before the crisis at least get -- Thad -- cash. -- that but this is maybe some stocks on which he could put beside the first year of say it but right. That maybe 35 cents to these days it's at least 50% it seems and what was the significance of at one panning over a certain amount abundance. Had everything if that he had nothing coming and it adds up to that but it is you you're getting the -- budget crisis -- and -- -- -- -- -- -- that you were here working naral -- now be here today. And their stock as well tripled this illustrious holding in your house. Two years six basis sitting on who are now able to sell some of that stop for right from the 2000 that bonuses. I mean it is great if you -- bogus and goodness if you think it's doubled the next two years. I do eighty if you could just moved some in -- obvious -- Thomas stopped employees from this time last year and right up there up 5660%. So -- -- -- the pictures the geez these days and bonds seems to come from pay that. Has been deferred in previous years as a result but a federal haven't caught up front right they would -- that big bonuses but. At least though. Feel warm because of what's coming from previous exotic is at the moment there's not a great deal list of -- coming from the future now some -- the business is doing well at capped months and well for example. But if you look at -- earnings going most of -- banks on the -- a huge amount of revenue increases will be sunny might have been a good bit sort of things must must management. So won't eat anything well I might get a bit -- the future but investment bank is especially exhibit has been saying at a policy is -- We know we're not putting out for its cutting costs on on bonuses as much as we as many revenues Hollywood don't worry -- revenue goes up and this is -- up as much. We got to make shall be extinct. McCain will keep long semi on the we'll leave it will come always burnings and pay numbers next weekend we'll have more breaking -- for you to work.

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Breakingviews: Backward bonuses

Thursday, January 09, 2014 - 03:20