"There were a number of things about the old bonus culture that were abhorrent," said one senior banker, "but they were variable: when times were good you paid out millions, when times were bad you paid out nothing.
"Under the new structures, a much bigger part of pay is in fixed salary -- and you have to pay that whether times are good or bad. So when you get a lean spell like the one we're in, the only lever you can pull is to lay people off."
That's certainly the view of the high-powered individuals who have the final say on hiring and firing in the City. If the fat cats at the top of the world's biggest banks want to keep their jobs, they will have to lay off thousands more of their underlings.
Hiring and firing is part of the rough and tumble of life in the City. The lack of job security is one of the key defences bankers tend to rely on when trying to justify their giant pay deals. Big banks always cut jobs at the first sign of trouble. In September 2008, when the financial crisis began, there were almost 170,000 people approved by the British Financial Services Authority to work at a high level in the City. By June this year, that number had fallen to 159,000, according to IMAS Corporate Finance.
That's only the tip of the iceberg. The official figures only track employees with management responsibilities, or who deal directly with clients…
Read more at http://www.theaustralian.com.au/business/companies/bruised-overseas-banks-shed-staff-with-more-to-come/story-fn91v9q3-1226106243254
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