Possible Staff Cuts for Macquarie

Submitted by Sharemarket News on 18 July, 2011 - 10:30

Hundreds of jobs could be lost as the Macquarie Group, (ASX:MQG) faces a weak investment market. For the first time since early 2009, Macquarie shares dropped below $30 last week and prompted a Citigroup analyst to recommend workforce cuts.

Macquarie wages have recently fallen below international averages and staff had already been lost to Asian companies with more lucrative offers, according to chief executive Nicholas Moore.

The bank acknowledged in its annual general meeting last month that it faced many remuneration challenges.

"Some peers have sought to rebuild their businesses after the global financial crisis," said Macquarie. "Other firms are not constrained by regulator pay guidelines and are able to offer attractive remuneration packages to target staff."

Investment bank Normura estimates that Macquarie paid workers an average annual salary of $300,000, 40 percent lower than their international counterparts.

Macquarie however said that the estimates did not factor in its retail division.

"Our remuneration structure has always been performance based," said a Macquarie spokesman. "A good example is seen in the salary of CEO Nicholas Moore, who saw his salary drop from $32.8 million in 2007 to $290,000 in 2009."

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