These firms are paying a bigger slice of bonuses in cash

Wad of Cash

Cash is King.

Employees at the biggest European firms will get a bigger piece of their 2015 bonuses in upfront cash. Some will have to wait even longer than before to get the whole amount.

Bloomberg News reports that banks including Credit Suisse and UBS are deferring a smaller portion of incentive compensation as they seek to lower expenses in future years. Deutsche Bank is extending its deferral period from three to four years for all employees after posting a loss in 2015, while Barclays' deputy chairman said he’d like to see that wait climb to as long as a decade.

Global investment banks are seeking to appease both regulators, who want more deferred pay to tie employees’ rewards to long-term results, and shareholders, who want firms to have flexible cost bases in case of tough years. The expense of a deferred award is typically recognized when it vests, meaning that banks can have billions in costs from prior years’ pay before counting a cent of the current year’s compensation.

To access the complete Bloomberg News article hit the link below:

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