Intellectual Capital

Financial Sector Compensation Policy Post Crisis: How has it changed and will it be effective?

Written by Geoff Gottlieb

Nobody disputes that key talent attraction and retention remains a critical driver of any financial services firm’s long term success and profitability, and therefore a high priority issue for senior management. The competition for talented professionals is intense in many industries and, particularly in financial services, compensation is still of primary […]

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Diversified Mandatory Deferred Compensation for Financial Firms

Written by Geoff Gottlieb

Post crisis legislation is forcing financial services firms to increase the percentage of annual bonuses that are deferred. For example, in Europe the CRD3 requires deferral of at least 40% of “small” bonuses and 60% of “large” bonuses (the dividing line between small and large is 500,000 […]

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Why COLI is Usually a More Expensive NQDC Hedge Than a Total Return Swap

Written by Geoff Gottlieb

Our previous article on NQDC hedging introduced the Total Return Swap (TRS) as an attractive alternative to direct hedging or COLI. That article considered a wide range of qualitative and quantitative benefits, but did not drill down into the economics of each strategy. In this article, we take a […]

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Voluntary Deferred Compensation (VDC) Plans Outside the US

Written by Geoff Gottlieb

Perception: Voluntary deferred compensation (VDC) plans don’t work outside the US In our conversations with US multinational companies sponsoring VDC plans for their domestic employees and with tax/legal advisors to such firms, we frequently hear that an effective voluntary deferral […]

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Potential Impact of EU Legislation Capping Banker Compensation and What Banks Can Do About It

Written by Geoff Gottlieb

CRD4 includes legislation that limits the amount of variable compensation that can be paid to bank employees for the 2013 performance year, effective as of 1/1/2014. The prescribed limit, or cap, is 100% of fixed compensation (base salary plus benefits), but may be increased to 200% […]

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Washington Just Made Your NQDC Plan Much More Attractive For Your Executives

Written by Geoff Gottlieb

Non-qualified deferred compensation (NQDC) plans can be critical in helping executives meet their long term wealth objectives. A well-designed plan permits the deferral of bonuses and other compensation on a pre-tax basis […]

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Wall Street is Back

Written by The Economist

That’s not necessarily good for America. For a few tense weeks in 2008, as investment-bank executives huddled behind the imposing doors of the New York Federal Reserve, Wall Street seemed to be collapsing around them. Lehman […]

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