By Katie Llanos-Small
Investment banking compensation: Global divide
As regulation on bonuses at investment banks in Europe advances, the effects are being felt in Brazil, albeit slowly
The highly contentious debate raging in Europe over investment bankers’ pay has yet to reach the mainstream in Brazil. Even so, its effects are already being felt there.
At all levels of the pay scale, the amount investment bankers take home at the end of the month can vary dramatically in Brazil according to the nationality of the institutions they work for.
This is because of rates of deferred compensation: bankers at Brazilian institutions are likely to have a higher proportion of their pay in cash than their competitors down the road employed by a European or US bank.
Those working for European banks typically have the largest proportion of their pay handed to them in stocks. This is primarily a result of regulators at home tightening the rules on what these institutions can pay out. European authorities are in advanced stages of drawing up rules that...
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