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This is so stupid, don't they know that it is bad for RBS in the long run if the lose talent like this?? Bonuses are there for a reason, to attract and retain talents... no foresight whatsoever...
If the general public can't conceive that, how are a bunch of jumped up politicians in Brussels going to see that.
They've murdered the share price and they've murdered the bank.
Headhunters have received CVs and phone calls from scores of disaffected staff in Royal Bank of Scotland's global banking and markets division, following the bank's decision to halt cash bonuses for three years and defer the bulk of all securities-based variable compensation.
Most of this bonus talk at troubled banks and banks that have signed on to various bonus-systems doesn't really affect analysts and graduates as they are considered to be below the radar with regards to bonuses as, well, they don't really get that big of a bonus compared to the top rain makers and s&t guys. But at RBS, if I understand the articles correctly, anyone earning over £39,000 (and the starting analyst base salary is £46,000) will have their cash bonus deferred for 3 years and they'll be subject to clawbacks. I understand that analyst bonuses won't be be huge at RBS, but still, having to wait 3 years till you get any cash bonus is just ludicrous! Unless of course any share bonuses the analyst get can be vested and sold, but even still that's a bit of a let down for analysts.
Last edited by uthinkilltellu : 2 Weeks Ago at 17:15.
Most of this bonus talk at troubled banks and banks that have signed on to various bonus-systems doesn't really affect analysts and graduates as they are considered to be below the radar with regards to bonuses as, well, they don't really get that big of a bonus compared to the top rain makers and s&t guys. But at RBS, if I understand the articles correctly, anyone earning over £39,000 (and the starting analyst base salary is £46,000) will have their cash bonus deferred over 3 years and they'll be subject to clawbacks. I understand that analyst bonuses won't be be huge in an bank, but still, having to wait 3 years till you get any cash bonus is just ludicrous! Unless of course any share bonuses the analyst get can be vested and sold, but even still that's a bit of a let down for analysts.
Don't feel too sorry for them. Word on the street is that whatever would normally be paid in cash will now be paid in some sort of genius debt instrument that for all purposes (except political) is as liquid as cash.
I've got the first/initial assessment centre for RBS Sales Grad next week; I was wondering if you could tell me how the day is structured, and what type of questions they ask in the interview?
Thanks much appreciated.
Read the earlier thread, its all there.
I had my interview first, all competencies based question and its more like a chat really. Then 2 tests, one numerical and one ABLE (something new this year), nothing to worry about!!
Curbing of bonuses and experienced employees planning to leave RBS will infact mean that they will rather be looking for graduates....than curbing the grad hiring quota...
What do you think guys...?
Curbing of bonuses and experienced employees planning to leave RBS will infact mean that they will rather be looking for graduates....than curbing the grad hiring quota...
What do you think guys...?
You mean as in replacing the old bankers with the new blood? That may well possibly be true. Although I, personally doubt that the increase in the number of graduates will be down to this (bonus) event. You see, it takes time for graduates to be trained up and even longer than that for graduates to make a meaningful contributions to the bank's bottom line, be it time spent getting experience trading bonds, or time it takes to build up trust for your clients to do business with you. The old bankers on the other hand, had a direct impact on RBS's bottom line, they had their clients and they knew how to profitably trade a bond. So if these experienced employees leave then it will be a double blow for RBS. One, the bottom line suffers, and two, there won't be experienced enough staff to train the analysts*. What this means is that RBS will try to somehow retain the current experienced bankers from leaving and if any leave then RBS will try to somehow poach bankers/traders/salespeoples from other banks.
* I personally think that this will be the bigger blow to the incoming analyst class, as the whole point of joining a bank is to learn from, and work with, the best.
Curbing of bonuses and experienced employees planning to leave RBS will infact mean that they will rather be looking for graduates....than curbing the grad hiring quota...
What do you think guys...?
Grads dont do anything but the dirty work on deals. If the top rainmakers leave then deal flow slows down, therefore less need for grads which equals less grad hiring.
RBS in Stamford got the conference call after the “Oh, we’re taking more money from the UK government” news yesterday. (No one understood we why needed more money.) Anyway, since in 2008 the bonuses were deferred until June 2010 (and then, only 1/3 was getting paid out, and then, only in paper), now 2009 will not be paid until June 2010 (typically it was March of the following year)…and they are “unsure” if it will be ANY cash at all. It would be paid in RBS debt. Everyone is extremely unhappy.
So now, the last time (RBS) Greenwich Capital people got paid a bonus was March 2008 (for calendar 2007) and the next time we’ll get anything will be June 2010. Base salaries only for what will be over 2 years. There has been more than 1 personal bankruptcy filing by employees (traders).
Hard to tell if the UK is just jerking us around, making us think we’ll get cash when we won’t; or if they’re just being honest when they say they just don’t know. Machiavellian or just disorganized? Probably the latter.
If the top rainmakers leave then deal flow slows down, therefore less need for grads which equals less grad hiring.
IMO, I think this spiral is something which looks like the upcoming reality which we as outsiders can think.
But from the perspective of RBS management, they definitely don't want to let the deals slow down and so they will try to keep the rainmakers somehow even by going out of their way. But RBS will definitely not go 'out of their way' to keep the middle layer (associates, et al) in case they start leaving. (the ways are pretty limited in the first place once you deduct the "best way"-Bonuses). This might create a scenario of not having enough people at the middle & lower level to execute the deals....which can mean full analyst hiring.
Offcourse this doesn't mean that fresh grad analysts can replace the associates in a jiffy.... But in my opinion, RBS management will hire their full quota of analysts in a hope to bring them up to speed faster to take up the positions of 2nd yr analysts/associates who they imagine can leave the boat in the near future...
Well, I may be completely wrong... ..... But this is just my take on the things..... can be a healthy debate
Last edited by browncargos : 2 Weeks Ago at 19:22.
You mean as in replacing the old bankers with the new blood? That may well possibly be true. Although I, personally doubt that the increase in the number of graduates will be down to this (bonus) event. You see, it takes time for graduates to be trained up and even longer than that for graduates to make a meaningful contributions to the bank's bottom line, be it time spent getting experience trading bonds, or time it takes to build up trust for your clients to do business with you. The old bankers on the other hand, had a direct impact on RBS's bottom line, they had their clients and they knew how to profitably trade a bond. So if these experienced employees leave then it will be a double blow for RBS. One, the bottom line suffers, and two, there won't be experienced enough staff to train the analysts*. What this means is that RBS will try to somehow retain the current experienced bankers from leaving and if any leave then RBS will try to somehow poach bankers/traders/salespeoples from other banks.
* I personally think that this will be the bigger blow to the incoming analyst class, as the whole point of joining a bank is to learn from, and work with, the best.
I had my interview first, all competencies based question and its more like a chat really. Then 2 tests, one numerical and one ABLE (something new this year), nothing to worry about!!
You applied for Sales Grad as well, but I thought there will be three tests which include the verbal test?
Most of this bonus talk at troubled banks and banks that have signed on to various bonus-systems doesn't really affect analysts and graduates as they are considered to be below the radar with regards to bonuses as, well, they don't really get that big of a bonus compared to the top rain makers and s&t guys. But at RBS, if I understand the articles correctly, anyone earning over £39,000 (and the starting analyst base salary is £46,000) will have their cash bonus deferred for 3 years and they'll be subject to clawbacks. I understand that analyst bonuses won't be be huge at RBS, but still, having to wait 3 years till you get any cash bonus is just ludicrous! Unless of course any share bonuses the analyst get can be vested and sold, but even still that's a bit of a let down for analysts.
This year's bonus will be paid in three installments. 50% in cash in June. Then the remainder in deferred shares which can be monetised in year 2 and year 3.
No bank is paying 100% cash bonuses this year. Hester has done wonders persuading UKFI to sign up to this bonus scheme.
Thanks Samkiwi888. Were there any motivation questions (e.g. why RBS) that sort of thing?
Yap, like why Sales, RBS, and competencies questions, i.e. A time you have to adhere to tight dealines, what you did, how you do it and would you change anything in future.
Investment and retail banking, equities, trading, derivatives, consultancy... enter the complex but lucrative world of high finance or become a corporate whore.
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