NEW DELHI: The acquisition of Lehman Brothers��� business in Asia by Nomura Holdings has moved into the next phase with the integration teams in place and retention bonuses being announced across various levels. Sources within Nomura have told ET that employees at both the investment banking and back-office divisions of the company in India have been granted retention bonuses varying between 40-130% of their annual basic salaries. These payouts are expected to be made in the month of December and it will be a one-time payment.
However, according to the sources, all those employees who have signed contracts with Nomura have been asked to adhere to one condition. ���To get these bonuses, employees need to work with the company for a minimum of one year, failing which they would have to return the money,��� said a company source. When contacted, Nomura Holdings declined to comment. ���We have a policy of not commenting on staff and employment issues,��� it said in a mail to ET.
Analysts and associates at the 170 member investment banking team will receive upwards of 130% of annual base compensation as bonus. However, the bonuses will be much higher at the senior levels. Sources said that a few senior executives from Lehman, who manage pivotal businesses for the organisation such as institutional equities and investment banking, will be paid close to Rs 5-6 crore as bonus. Some research analysts who specialise in tracking certain sectors as well as specialists on the fixed income and commodities side of the business have been granted bonuses in the region of Rs 1-1.25 crore.
At the back-office in Powai bonus pay-outs will start at 40% of annual base compensation and move upwards depending on seniority and experience. The back-office employs close to 3,000 people, of which a large majority provide information technology support to the erstwhile investment bank���s global operations.
However, it also employs people who provide research support to businesses as varied as investment banking, equities, fixed income, currencies and commodities globally.
For instance, the capital markets division at the back-office has 300 people, who track different geographies and sectors on the equity research side.
Sources at Nomura say that these announcements have brought back a sense of normalcy at the organisation and its ���business as usual���.
They also added, ���with the integration committee in place, businesses will be reviewed and some cost-cutting could take place. Yet, we have been assured that atleast 90% of the staff in India will be retained���.
ET had reported early this month that Nomura promised attractive retention bonuses for its staff based on the existing compensation levels, soon after it took over. However, Nomura has not offered any salary increases to Lehman employees.
���Since markets are bad, candidates from Lehman who had earlier approached our firm to look out for other job options preferred staying with Nomura after the announcement of bonuses,��� said Talent Trackers founder Shekhar Vaishnav.
Nomura Holdings had bought Lehman Asia (i-banking business) in a $225-million deal last month. The deal included Lehman���s fixed assets and human capital. Earlier this month, it also bought the banks��� back-office operations at Powai, Mumbai for an undisclosed amount. The deal had ensured that all 3,000 employees at this office would retain their jobs.
