Firms Said Losing Patience With Staff, New Comp Rules 'A Game Changer'

Wow

Now this is a first.

The Financial Times reports that Deutsche Bank 'has become the first global bank to introduce rules allowing it to strip staff of bonuses they earned at previous employers'.

When staff move from one firm to another, it's not unusual for the hiring firm to buy out restricted stock by issuing shares on the same terms to the new employee. Deutsche Bank, though, is said to have introduced rules earlier this year that will allow it to clawback the restricted stock issued in this way if it has cause to do so.

The newspaper says that these rules are 'unusual, if not unique' in the industry, but are thought likely to provide a blueprint for rival firms.

John Singer, an employment attorney at Singer Deutsch, told CNBC’s 'Closing Bell' on Monday that Deutsche's new compensation plan is a 'game changer'.

And The Financial Times quotes one unnamed 'pay expert', who said: 'There has been a whole bunch of incidents that could give banks reason to clawback unvested bonuses and boards are losing patience with staff. There is a growing recognition among remuneration committees that they need to get more draconian'.

In the meantime, Bloomberg reports that former brokers of Bank of America’s Merrill Lynch & Co. unit asked a federal judge to approve a $40m settlement in a lawsuit over deferred compensation.

Charles McCallum, a lawyer for the brokers, told U.S. District Judge Alison Nathan last week in Manhattan federal court that the proposed settlement would cover more than 1,400 people. The judge said she will rule later on preliminary approval.

The lawsuit, filed by Scott Chambers and John Burnette, relates to Bank of America’s 2009 purchase of the investment firm. The brokers alleged in their complaint that they were entitled to cash distributions stemming from a change in control of Merrill Lynch.

And the news organisation also reports that Julius Baer is contacting wealthy German customers after an employee stole information on their offshore bank accounts in Switzerland.

'We launched an internal investigation and we discovered a case of data abuse', a spokesman for the Zurich-based bank confirmed last week. 'We are in contact with potentially affected clients'.

Finally, The New York Daily News reports that at U.S. government-owned AIG, Snapple and Starbucks are gratis - and so are pricey golf outings and holiday bashes.

Free Snapple, Starbucks coffee, and sodas - even Tylenol and Advil - all available at a company pantry round-the-clock.

Periodic company parties at swanky local restaurants, complete with free buffet meals and open bars.

Breakfast and lunch trays delivered several times a week to employees at company expense.

Hit the link below to access the complete New York Daily News article:

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