Morning Coffee Mar 31 2011

BofA Pay: Feast and Famine

By kyle stock

If you want a good sense of how priorities have changed on Wall Street boards, take a look at the Bank of America proxy report filed with the SEC late yesterday.

The top boss and i-banking head saw huge pay cuts, while leaders in risk and wealth management were handsomely rewarded.

In a year when BofA posted a $2.2 billion loss, CEO Brian Moynihan garnered $1.9 million, down from $6.5 million in 2009, according to the filing. And Thomas Montag, who heads i-banking, saw his pay fall from $29.9 million in 2009 to about $831,000 (though those numbers were skewed by some contingencies).

Meanwhile, Bruce Thompson, the bank's chief risk officer, received $11.4 million. And Sally Krawcheck, head of global wealth and investment management, garnered $6.2 million.

Pay was much more stable at Charles Schwab where CEO Walt Bettinger received $10 million, only slightly less than his 2009 haul. Chuck had a decent year with a slight revenue gain, though its income was dragged down by a settlement of charges that it overstated the security of a bond fund.

Looking Up (FINS)

Planned layoffs in the finance industry fell to 1,525 in March, almost half as many cuts as were announced in February.

Crossing the Pond (DealBook)

Is Barclays U.S. bound? That's what two UBS analysts think, as British policymakers ponder rules to split investment banks from retail operations.

Jamie Weighs In (Bloomberg)

JPMorgan CEO Jamie Dimon said Wednesday that about 100 municipalities won't "make it" out of debt. But don't panic, Jamie advised, it's not "going to shatter America."

You're Hired (WSJ)

The U.S. private-sector added 217,000 jobs last month, according to payroll giant Automatic Data Processing Inc. That's 28% more than economists thought.

Career Default Swap (CNBC)

Bank of America swiped a senior swaps trader from Goldman Sachs. The firm seems to be building its rates trading business.

Meanwhile... (Financial News)

Brevan Howard, a British-based hedge-fund manager grabbed three former Goldman prop traders. Call it Volcker-rule brain-drain.

Spreading the Wealth (InvestmentNews)

About two-thirds of U.S. households with more than $10 million to invest work with at least four financial advisors, according to a new study.

Meet the New Boss (Financial News)

The head of Nomura's America's i-bank, Glenn Schiffman, is out after only about a year. Here's a look at Jim DeNaut, who's taking over.

However... (TheStreet)

A new wave of layoffs is rippling through the bank industry, as lenders cuts costs. At least five firms plan to hand out pink slips.

List of the day: Buyout books

Forget pitch books and politics. The real Masters of the Universe are in PE. Here are their playbooks:

1. "King of Capital, The Remarkable Rise, Fall, and Rise Again of Steve Schwarzman and Blackstone," by David Carey and John E. Morris

2. "Vault Career Guide to Private Equity," by Mike Martinez

3. "Venture Capital and Private Equity: A Casebook," by Josh Lerner, Felda Hardymon and Ann Leamon

(Source: FINS)

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