Pay

Bad news salvo gives Bank of Japan some cover

16 Mar 2023

The collapse of U.S. lender Silicon Valley Bank knocked down sovereign bond yields. Consumption remains soft, and while Japan Inc is hiking wages by 3% on average, that’s well below inflation. There’s nothing to cheer, but it takes pressure off the BOJ to adjust rates.

China’s equity watchdog gets backhanded promotion

8 Mar 2023

Beijing is elevating the China Securities Regulatory Commission in the bureaucratic hierarchy. It ought to be good news for an agency whose authority has been diluted in recent years. Yet the change sets staff up for a pay cut. More power with less money is a bad combination.

Capital Calls: TD Bank’s $13 bln cliffhanger

2 Mar 2023

Concise views on global finance: The Canadian bank’s acquisition of U.S. peer First Horizon will be delayed beyond its May 27 drop-dead date, but there are reasons to think it will still get done.

UK bailout has energy bosses walking on eggshells

13 Feb 2023

Power suppliers like Centrica took billions of pounds of government cash to help customers pay high bills. That leaves them open to charges they pocketed gains and handed losses to taxpayers. For an industry intertwined with the state, pay restraint is vital to self-preservation.

Capital Calls: Prices down, jobs saved?

12 Jan 2023

Concise views on global finance: New data shows U.S. prices falling 0.1% in December, marking the largest drop since early 2020. With inflation in retreat, the Fed can focus more on keeping Americans employed.

UniCredit CEO Orcel has leverage in pay debate

6 Dec 2022

The veteran dealmaker has hit his bank’s targets this year and narrowed a valuation gap to peers. Andrea Orcel may therefore deserve his maximum annual bonus. A pay hike beyond that is less obviously required, but legitimate fears he may jump ship may tip the board to offer one.

Private equity’s pay boom may have peaked

29 Nov 2022

The average European buyout partner has 20 mln euros of outstanding carried interest in their current fund, reckons Heidrick & Struggles, up a quarter from 2021. Junior wages soared. Yet a possible fundraising slowdown and layoffs elsewhere in finance will slow the gravy train.

Gig worker rule comes at bad time for gig economy

11 Oct 2022

President Biden’s administration wants to turn more independent contractors into employees. The move may squeeze firms like Uber and DoorDash that rely on casual labor. Workers are already scarce and inflation is squeezing consumers. Higher costs threaten long-awaited earnings.

Bonus cap scrap would be dubious Brexit dividend

15 Sep 2022

UK finance minister Kwasi Kwarteng may dump rules curbing banker payouts to twice their salary. Yet it would only marginally boost the City’s competitiveness and may make more meaningful tax changes less likely. The benefits of tearing up EU regulations look increasingly elusive.

Capital Calls: Taiwan, Meme stocks

18 Aug 2022

Concise views on global finance: Trade talks between the United States and Taiwan suggest tensions with China will keep rising. Meanwhile, the fade and rally in Bed Bath and Beyond shares show the stock craze is making a comeback.

Tight bosses are counting on a looser jobs market

1 Jul 2022

BT, British Airways and Sainsbury’s are tussling with workers over pay. Given the Bank of England thinks tight labour markets should slacken, bosses have scope to hang tough. But if the BoE is wrong, which is possible, they will have lost valuable worker goodwill for nothing.

Rolls-Royce showcases flexible pay’s ups and downs

22 Jun 2022

The $9 bln UK engineer is offering its staff a one-off payment to match soaring inflation, instead of a bigger salary hike. The flexibility works for employers, and lump sums are worth more to lower-paid employees. But workers have to trust bosses to give similar help next year.

Review: War on digital payment fails to hit target

20 May 2022

Brett Scott’s “Cloudmoney” seeks to remind the world of the value of physical cash. It’s true that an overly automated system of money carries risks like the potential for surveillance. But the campaigner underestimates consumer demand for digital transactions.

Being Jamie Dimon just became less fun

17 May 2022

Over two-thirds of JPMorgan investors rejected the CEO’s pay package, the worst rebuke at a big U.S. bank in a decade. That won’t hit Dimon in the wallet, and there’s no sign shareholders want him gone. But his bully pulpit, like his bank, is smaller than it was a year ago.

Capital Calls: GM electrifies executives’ pay

27 Apr 2022

Concise views on global finance: The Detroit automaker’s move to tie boss Mary Barra’s pay to electric vehicles goals is a new spin on pledges to shift away from combustion-engine cars.

Capital Calls: Stellantis CEO’s outsize salary

14 Apr 2022

Concise views on global finance: The carmaker’s shareholders opposed Carlos Tavares’s 59 mln euro pay package, but he’s going to receive it anyway.

Andrew Bailey pay rise clanger has tiny PR upside

7 Feb 2022

The Bank of England chief’s call for wage restraint has gone down badly with workers facing soaring prices. The ensuing controversy, has, however, done more to inform the public about the central bank’s mission to control inflation than many past communications campaigns.

SoftBank No.2 exit shows bad timing all round

28 Jan 2022

Marcelo Claure overhauled both Sprint and WeWork for the $70 bln conglomerate. His departure was at least partly about money, per media reports. Expecting a bumper payout as shares halved looks a poor move. But SoftBank is losing a key player just when steady hands are needed.

Capital Calls: Enel’s payments punt

24 Dec 2021

Concise views on global finance: The 70 bln euro utility is paying up to 361 mln euros for a relatively pricey punt on fellow Italian payments firm Mooney.

Big Wall Street bonus pools may be hard to drain

15 Dec 2021

As revenue has rocketed amid friendly markets, so has banker pay this year at Goldman Sachs, JPMorgan and peers. Big payouts will help them compete not just with each other but with fintech and crypto firms. The catch is that the talent may start to expect it every year.