Here is the City has an interesting calculation of which financial firms are most likely to give out the worst bonuses this year – a bonus of nothing, zero.
They say that everyone calls the nightmare scenario getting a “doughnut bonus,” and they’ve predicted that a huge number of firms will be giving them out.
American banks are apparently the least likely to give out the dreadful 0, only Standard Bank and BofA Merrill Lynch are listed as potential dream-killers, but many, many banks outside the U.S. are on the list.
Luckily, the list doesn’t seem to be at all reliable. It’s merely based on Here is the City‘s admittedly arbitrary estimations.
Goldman Sachs, not surprisingly, came in last on the list of 26 most likely to hand out zero compensation to its prized employees. Wells Fargo, JP Morgan, Citi, Morgan Stanley and Jefferies also came in mainly in the bottom half.
Here are the
The top 10 banks most likely to hand out nothing at year’s end are:
- WestLB because the bank is on the brink of collapse.
- Commerzbank because the firm has been shifting its business away from risk and toward the German domestic market – “Not a recipe for investment banking bonus heaven.”
- Standard Bank because “currently restructuring its operations after an ambitious period of growth failed to deliver the expected returns.”
- ING Wholesale Banking because it “seems to have an investment banking unit only because some (mainly Dutch) clients expect it to.”
- RBS because i-banking performance has been weak and the firm’s CEO has already said that the bonus pool would be smaller than last year.
- HSBC Investment Bank because the government will be looking for the bank to show “restraint” on the compensation front and it’s been reported the bank may increase base salaries to offset bonus decreases.
- Credit Agricole because the bank is known to give doughnut bonuses.
- BNP Paribas because i-banking results have been mixed, it is known to give doughnut bonuses and with other divisions performing better, it will be “less concerned about alienating some of its investment bankers.”
- Bank of America Merrill Lynch because the unit “hasn’t delivered the expected returns” and the bank will be focused on proving to Obama it is committed to restraining compensation.
- Standard Chartered Bank because it always gives doughnuts (though apparently there will be less this year than usual).