Everybody will have to think again about pay…


Andrew Garner, chief executive of executive search firm Garner

The most fundamental change to banking will be how staff are remunerated. People will no longer accept being rewarded with equity in the company they work for – Lehman Brothers led the way in doing that and some of its staff have lost hundreds of thousands of pounds in shares that are now worthless.

More broadly, there will be a bigger emphasis within banks on staff management and retention. If you can’t win over people by issuing them with your own shares, how are you going to reward and motivate them?

I believe there will be more emphasis on traditional banking methods and less emphasis on computer modelling. As we have witnessed, you can’t predict the future.

Sadly, most of the Lehman employees will not find themselves being fought over by head hunters – head hunters already know the top people. So the idea that recruitment consultants are feverishly ringing


September 21, 2008
Richard Reid is the founder of Pinnacle Proactive, Specialising in theEmployee Assistance ProgramStress ManagementStaff Retention & Absenteeism. Take a Proactive Approach to Growing Your Organisation & its People. For more info visit http://www.pinnacleproactive.com


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