BankerKing:
is this for all-in or bonus only? If it were bonus only, I think these are above market. Think of a 1st yr getting "low teens" for bonuses? That's like almost 120~200% of base.

???

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BankerKing:
is this for all-in or bonus only? If it were bonus only, I think these are above market. Think of a 1st yr getting "low teens" for bonuses? That's like almost 120~200% of base.

wtf are you saying

 
Djalminha:
Nonsense. Bonuses in Sydney are at least double this and I can't believe they'd be lower in NYC.

Their Sydney office is a top 3 player with a presence in nearly every major deal in the country. Their NYC office is a ridiculed mid-market shop that struggles to secure a place in the lower half of the top 20 league tables (landing #18 last year). So I can definitely believe that NYC bonuses would be WAY lower but not of the order mentioned by the OP.

 
2226416:
Djalminha:
Nonsense. Bonuses in Sydney are at least double this and I can't believe they'd be lower in NYC.

Their Sydney office is a top 3 player with a presence in nearly every major deal in the country. Their NYC office is a ridiculed mid-market shop that struggles to secure a place in the lower half of the top 20 league tables (landing #18 last year). So I can definitely believe that NYC bonuses would be WAY lower but not of the order mentioned by the OP.

Fair point. I would have thought this effect would be netted off by pay in the US generally being a lot higher, but could very well be wrong - I don't know anyone that works at Macquarie in New York but certainly their pay in London and Sydney has remained decent the last couple years (albeit well down from '06 and '07).

I will also second the above posters point about Macquarie generally not being considered a great place to work - most former employees I know hated the place and the guys still there don't speak too highly either.

 
Best Response

from today's wsj:

"Stuck in a rut, Macquarie Group is taking it out on its employees.

The Australian investment bank's profits for the year ending March were in line with expectations. Return on equity of 10% was unchanged from a year ago.

A cut in employee compensation gets the credit. Macquarie paid employees 40.9%of its earnings in the second half of the fiscal year. This may not be great for employee relations, but it'll do wonders for investor relations, considering that when it paid out 45% of income to staff in the first half, shareholders weren't pleased.

The high payout level harkens back to the days preceding the global financial crisis, when Macquarie was generating ROE above 20%. Always self-assured, Macquarie's management is promising its compensation ratio will rise back to historic levels of 45% to 48% as business improves. But ROE is a key determinant of employee pay.

The bank says its cash balances are to blame for the damped ROE, but also that it will keep those balances high in the year ahead. So it is going to take an impressive rebound in earnings to improve that metric. Just where that'll come from remains unclear.

It has had some successes recently. On the investment-banking front, Macquarie's role as an underwriter of the massive Hong Kong listing of Agricultural Bank of China was a surprise. In a dual Hong Kong, Shanghai listing, Agricultural Bank is expected to raise more than $20 billion.

And eventually, Macquarie's investments over the past year or so -- $2 billion for a portfolio of airplanes from AIG's aircraft leasing division in April, an energy-trading firm in Canada, and a boutique investment bank and asset manager in the U.S. -- will yield results. But this will take time and further investment. All the while, competition in each business line is rising.

In years past, Macquarie's been known in Australia as the millionaire's factory. It might be a while before it gets that designation again."

 

These are in line with Singapore and Hong Kong IBD numbers we received today. Morale has been completely destroyed. No one on the floor believes in this company anymore. I am waiting for the exodus come late May when our tiny bonuses hit the bank accounts.

Any person here who thinks I am lying should contact their friends or headhunters in Singapore and Hong Kong. I implore you to do so!

 

How I wish you are right! Yes it is hard to believe. Yes those are definitely full year numbers. I'm looking at the pdf right now. It starts by reading:

"2010 Remuneration Review "This summary confirms your annual Remuneration effective 1 July 2010. The breakdown of your discretionary Profit Share allocated for the year ended 31 March 2010 relates to your service"

I have a similar pdf from last year around this time. It is really just once a year. Macquarie also does not adopt New York's June (analyst) and Dec (associates and up) bonus system. Everyone gets their numbers in late April or early May and gets paid by end of May.

They are real my friend. It is really that bad. A lot of us are still in denial.

 

Doesn't seem like Macq in Aust is affected?

http://www.theage.com.au/business/a-lick-of-paint-for-the-factory-macqu…


A lick of paint for the factory: Macquarie 2.0 May 1, 2010

For all the soul-searching wrought by the financial crisis, not much has changed at the investment bank, writes Michael Evans.

T here is nothing like a financial crisis to create an identity crisis. Two years after it skirted the precipice of the global credit crunch, who, or what, is Macquarie Group?

Gone are the listed infrastructure satellites and the fee-generating external managed funds model. Long gone is the boom-time boss, Allan Moss.

Presenting the bank's 2010 full-year result in his latter-day role as chief austerity officer, Nicholas Moore seemed more certain of what Macquarie was not.

With Goldman Sachs fingered in a US Senate inquiry this week for its role in the credit crisis, Moore was asked if self-righteous Goldman executives were claiming they were doing God's work, how did he respond to suggestions that Macquarie was doing the devil's work.

''We're not Goldman Sachs,'' Moore assured his audience.

Well, not that much like them, given Macquarie's accounts directly compare the bank with Goldman when it comes to setting Macquarie's rapidly rebounding remuneration levels.

After all, comparisons with other industry peers are a little more difficult these days, the bank's accounts show.

''As a result of the changes in the investment banking landscape, Macquarie considered its peer group in light of the absence of Babcock & Brown, Bear Stearns and Lehman Brothers.'' All gone to meet their maker.

Macquarie was bolstered by the use of the Australian taxpayer's AAA-rated government credit rating to help it raise money overseas and by the short-selling ban on financial stocks. But it was forced to change.

Just three years ago, the listed investment bank made about a quarter of its money from fees through the listed managed fund model. Moore has been busy recasting Macquarie and it is now beginning to resemble something far different.

Asked to describe it, he said: ''There are elements of our business that are very much investment banking style, commercial banking, funds management.'' On top of that, it has been buying energy trading and asset management businesses in the US, taking market share on Wall Street, where investment banking has been brought to its knees.

Macquarie 2.0 sounds an awful lot like a traditional investment bank.

And that is something for the market to consider when determining how to value the business these days.

But Moore isn't finished re-inventing Macquarie. Analysts still want to know what's next and even how a bank with the moniker of the Millionaires Factory manages the cycle of boom times and hubris.

''That's a very good question, in terms of what's Macquarie,'' he said. ''Fortunately, that's your job, not my job, to come up with comparisons.'' Just the answers.

Some things, however, get back to normal more quickly than others. Moore's salary, for one, is almost back into double-digit million-dollar territory. And the millionaires factory is hiring again. Prestige car yards and real estate agents can breathe easy.

 
Cjl49:
this is terrible. terrible. how can anybody look anybody in the face over there? if my MM bank pays like that i will cry. i heard banks like lazard and merrill are still expecting 50k for top tier 1st years.
50k for top 1st years at Lazard seems low...
 

No surprise at these bonuses in the U.S. Macquarie has scrapped the investment model mainly due to lack of equity and poor performing assets in its funds and balance sheet and has instead decided to become a third party advisor. Traditional investment banking is very competitive in the U.S. and macquarie has only been able to advise on a few measly dealsaround $50 million in value, hardly anything to generate revenue. at the same time they have been trying to entice others on wall street to come work at macquarie. now there are lots of people and little revenue, so little bonuses. this will likely continue into next year as there's little hope of them landing a substantial amount of mandates. people will be likely starting to leave as there are better opportunities out there. best bet is to stay away from this place as Australians have little idea of how to go about things in the U.S. Australia and Asia are a different story.

 

if macquarie is not the primary advisor, then you would expect these bonuses.

This has nothing to do with MM bank. If your bank is Jefferies/HLHZ/RBC who are usually primary advisors, then the bonuses will be a little bit higher.

I don't think not that much higher though.

 

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