Which might be true, but it’s an interesting view of the balance of power between labour and capital; one in which rainmakers are able to refuse to make job moves which might disadvantage them personally. The Bank of England appears to be making a bet that its competitiveness agenda is better satisfied by doing nice things for bankers than doing nice things for banks.
If there is one thing that bankers like, it’s giving themselves titles that make them sound more of a baller than they actually are. So Goldman Sachs has “Partners” who aren’t members of any partnership, while every other investment bank has “Managing Directors” who aren’t on the board of a company and in many cases don’t manage anything. A bank’s “Vice Presidents” are considerably further than a heartbeat from the presidency. I once worked for a brokerage where the highest rank was “Board Director”, seemingly in order to remind all of us ordinary Directors that we weren’t fooling anybody.
But the really important side effect is that aggressive deferral and clawbacks act as sand in the gears of the labour market for bankers. If someone has five years’ worth of bonuses held up, they are that much more difficult and expensive to poach. This is bad news for banks that want to hire or grow rapidly, but great news for incumbents. It also tends, probably, to reduce price tension for banker salaries, particularly in bull markets.
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