Shortly after buying parts of Lehman Brothers in Europe and Asia Japanese bank Nomura has confirmed plans to make its remuneration package more competitive.
A spokesman at Nomura refused to confirm reports that investment bankers at Lehman Brothers will receive the same cash bonuses as they did last year on the condition they stayed working with the firm until 2009.
However he did say the bank would review its reward offerings to retain staff. He said: “The company believes it should offer incentives for people [Lehman Brother’s staff] to stay to build a successful business. Essentially we are a people business and the market is extremely competitive.”
The news comes at a time when ‘fat cat’ bonuses in the City are under scrutiny from the Financial Services Authority and politicians.
Prime Minister Gordon Brown is currently in the United States calling for an international regulatory system, reform of the bonus structure and greater transparency on transactions.