Cash is king for bankers in Brazil
Local banks attractive thanks to cash rewards; International firms constrained by regulations
Brazilian banks are offering cash deals to recruit bankers from international firms that are under pressure to defer a larger proportion of total compensation. With Wall Street and European banks being driven to adopt longer-term compensation strategies, local banks have the advantage of being able to offer attractive, primarily cash-based salaries.
Managers at the international firms have reported increased attempts by Brazilian banks to recruit their staff in recent months and many have expressed concern that their inability to compete in cash reward structures will affect their ability to attract talent to their São Paulo operations and retain it. Bradesco is reported to have hired several bankers from Morgan Stanley last month. A senior banker at Morgan Stanley admits that some of the bank’s São Paulo team have left to join Bradesco but as Euromoney went to press the Brazilian bank declined to comment.
"In terms of being able to offer cash and short-term incentives the locals have a big advantage over the established US and European investment banks"
Michael Karp, co-founder and chief executive of The Options Group, a global financial services recruitment consultancy, thinks the local firms are a threat to the stability of the international banks’ teams in Brazil and other developing markets.