Remember what it was like to get your bonuses in cash - none of this deferred stock stuff ? But one firm's still bucking the trend (to the great delight of its staff).
Jefferies will pay employees year-end bonuses in immediately available cash, according to a memo to staff.
Bloomberg reports that Jefferies also is extending so-called garden leaves, the periods workers must wait before joining competitors, Chief Executive Officer Richard Handler and executive committee Chairman Brian Friedman said in the memo.
The decision to pay immediate cash is a departure from some competitors as Wall Street seeks to curb compensation costs. Morgan Stanley capped 2011 cash bonuses at $125,000 and deferred an average of 75% of payouts, up from 40% two years earlier. Credit Suisse awarded a portion of 2011 bonuses for more than 6,000 bankers in bonds backed by derivatives that will pay out over several years.
'It is no secret that virtually every one of our bank holding company competitors is forcing onto their employees extremely high levels of non-cash compensation with long vesting periods or compensation in the form of cash to be received well into the future', Handler and Friedman wrote. 'You can’t spend non-cash compensation or unpaid cash to buy a home, purchase groceries, invest in your life or help out friends and family'.
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