Morning Coffee: The big question about Barclays' 81 new managing directors. Morgan Stanley analysts discover excuse to lurk in the park
Barclays, which is in the process of devising a new strategy that may not, but should really, mean a lot of job cuts in its investment bank, is also making some promotions. In a press release yesterday, it said it had promoted 81 managing directors in its investment bank, down from 85 last year.
Who are they? The names, listed without context are:
Wei Ning Cho
Beatriz da Cunha
Ramiro Del Valle Rodriguez
They include the likes of the US head of prime broking (Abhinav Chandra), a German FX salesman in France (Henrik Rickardsson), a technology investment banker in Chicago (Nat Natarajan) and a sovereign debt banker in London (Alex Paterson).
The women on the list - Alyson Bader (US prime services), Tiffany Whelan (FX corporate sales), Emma Ward, Carmen Vargas (public finance), Charmaine Reason (hedge fund sales), Cindy Quan (head of ESG advisory), Kimberley Nash (US banker), Anita Jones, Lauren D'Arcy (head of partnerships relationships coverage), Lisa Cui (tech M&A) and Louise Collins (DCM) - are vastly outnumbered by the men and mostly seem to work in sales or investment banking rather than trading, but this is always and often the case.
The real question regarding Barclays' new, and mostly male, managing directors, is how they are being paid. Now that the UK government has lifted the European Union's bonus cap for bankers working at banks under its jurisdiction, Barclays is free to pay higher bonuses and lower salaries to its senior staff around the world. It would therefore make sense for this new cohort of managing directors to have either lower salaries or reduced fixed allowances, as the bank rebalances compensation towards bonuses instead.
Is this happening? Barclays declined to comment on its compensation structure. Last year, its average material risk taker (most of whom are managing directors) received a salary of £712k ($814k) and a bonus of £642k, making total compensation of £1.35m. This year, total compensation is likely to be lower whatever happens to bonuses, but for the new and all future rounds of MDs, salaries could be lower, forever.
There's a precedent for cutting salaries in the absence of the bonus cap. Bloomberg reported in March that HSBC will be cutting base pay for some of its bankers by 25% in the cap's absence. If you have insight into the new structure at Barclays, let us know through the contact details at the bottom of this article.
Separately, if you're an analyst in a bank, and you want to leave your screen on a Sunday, Morgan Stanley's equity researchers have the perfect excuse.
Bloomberg reports that Morgan Stanley's New York apparel researchers spent last Sunday in Central Park looking at the sneakers being worn by joggers, before returning to the office and writing a research note on the subject.
They discovered that the sneaker market is highly fragmented with no brand accounting for more than 17% of the market and 7% of shoes being completely unrecognizable. The latter may mean they have to go back again. The excuse won't work so well if you're a junior investment banking analyst creating pitch decks.
Now that it's got the likes of JPMorgan and Millennium, Paris wants more financial professionals. Firms are lobbying for the French government to make it easier for them to fire people. (Bloomberg)
How to be ignored as a female MD on the Citigroup trading floor. “I refused to walk down the center aisle [of the trading floor] because it was viewed as a catwalk with people looking at your appearance and talking about your appearance...I don't need glasses, but I wore glasses. I just tried not to be the focus." (Forbes)
MUFG hired Dariush Mirfendereski as head of inflation trading. (The Trade News)
Jacob Rees Mogg's Somerset Capital Management is winding down after client redemptions. (Financial Times)
It's Christmas and the office is full of sweet foods. Do not eat the M&Ms with your face printed on them. (WSJ)
Moody’s Investors Service advised staff in China to work from home ahead of its cut to the outlook for the country’s sovereign credit rating. (Financial Times)
Renaissance Technologies appointed David Lippe to be co-chief executive officer of the $40 billion hedge fund firm. (Bloomberg)
How safe are private credit CLOS? They're unlike traditional CLOs, where managers buy syndicated bank loans on the secondary market, bundle them, sell different risk tranches to investors and charge fees. Instead, a PC CLO is built on loans the PC shop has originated itself. They're also highly leveraged. (Financial Times)
MacKenzie Scott gave $2.15bn to charity last year. She's donated $16.5bn since she divorced Jeff Bezos. (Bloomberg)
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