The bonus is on you: Santander’s recent saga highlights the problems with deferred rewards

first_imgUnfortunately for both Orcel and Santander, this particular case has received a lot of attention.While Santander’s executive chairman Ana Botin told the Financial Times that the hire was rushed through, this saga has shone a light on the complex deferred payment system.“It has caused a major embarrassment for two large financial institutions,” says deputy editor of Fintech Finance, Douglas Mackenzie, who points out that Orcel now finds himself in the middle of a row over which bank should pay.This saga shows the pitfalls of the deferred pay system from both the employee and employer perspective.The system allows companies to impose financial penalties on individuals who want to change jobs. For employers, Israel says that there appear to be a number of substantial advantages. Share It not only makes sure that a company’s good performance is maintained over a long period of time, but also acts as a disincentive for people to leave for another job, therefore effectively forcing loyalty. You can see how some banking employees would be reluctant to change jobs if it means putting millions of pounds on the line.“You could say it shows that the system has worked for UBS, because they have prevented an employee going to another company,” says Hildyard.But it could have unintended negative impacts on companies too, because if staff are less inclined to leave, there’s a smaller pool to find new talent, and banks need to pay more to lure newcomers in.Israel explains the dilemma.“In reality, if there is to be movement of individuals, companies should meet the costs, so the effect is circular,” he says. “Consider it akin to football transfer fees – what a company saves in the forfeited bonus when losing an executive is spent in paying bonuses of a replacement who is recruited.”This particular episode could have wider repercussions. Indeed, Mackenzie reckons that the decision to jilt Orcel could ultimately lead to unintended consequences for deferred payments, as well as for the financial industry.“If senior bankers feel that their compensation is vulnerable, it could lead to deferred payments becoming less attractive,” he says.And for bankers who are motivated by large paychecks, the risk of not receiving their bonus later down the line could leave them less inclined to pull out all the stops, meaning that banks’ performance could suffer as a result.Conversely, if deferred payments remain popular, it could lock financial executives into their current institutions for life, says Mackenzie. “Why risk losing your millions over an acrimonious split with your institution?” And fewer bankers moving jobs means fewer high-quality candidates for institutions.“Either way, the system of deferred payments has caused an incredibly awkward moment in the financial industry, and this will lead to several institutions reevaluating their compensation and hiring strategy.”However, Hildyard disagrees the impact will be so dramatic, saying that while recent events might make bankers a bit warier of incentive plans, one high-profile screw-up is unlikely to prompt a change in wider corporate culture.However, that’s not to say he thinks that the system makes good business sense.“If executives can’t act in the long-term interest of the company without vast incentive payments, that raises quite worrying questions about their character,” he says.“And if companies are so dependent on these individuals, it raises equally worrying questions about their reliance on a handful of people and the inadequacy of their training, development, and succession planning processes.”Perhaps the question really centres on why some executives are still being granted million-pound paypackets – regardless of whether the money is deferred.As Hildyard says: “We don’t think there’s any real justification for the size and complexity of executive incentive payments, which if nothing else must take up so much time and energy that the board could redirect to more important matters.” Katherine Denham The bonus is on you: Santander’s recent saga highlights the problems with deferred rewards Star investment banker Andrea Orcel was about to take the top job at Santander. And then he wasn’t.It turns out that the bank hadn’t quite realised how expensive Orcel would be, resulting in an unprecedented U-turn, as the board announced that Santander wouldn’t be hiring him after all. whatsapp While Jose Antonio Alvarez will continue to hold the fort as Santander chief executive, Orcel finds himself at a bit of a loose end. Having spent several months on gardening leave from UBS investment bank, he is now not only jobless, but is without the tens of millions of dollars that he was expecting.Anyone who has ever been employed will probably wonder how this could happen – aren’t paypackets discussed and agreed before you accept a job?The answer, of course, is yes, and Santander’s statement made it clear that Orcel’s salary had been agreed beforehand.Where things got murky, however, is with Orcel’s “deferred benefits”. He earned these rewards from deals he made during his tenure at UBS, but payment was withheld and dependent on him staying at the company for a certain length of time. He effectively forfeited his bonus by moving on.Santander may have offered to cover the loss, but under-estimated the full amount, and it is not obliged to pay him earnings from his previous employer. whatsapp Tags: Company FinTech Saga Santander UBS Monday 4 February 2019 8:15 am According to Santander: “It has now become clear that the cost to Santander of compensating Mr Orcel for the deferred awards he has earned over the past seven years would be a sum significantly above the board’s original expectations at the time of the appointment.”With excessive pay at investment banks under intense scrutiny since the 2008 financial crisis, it’s not unusual for bonuses to be deferred, with a larger proportion now paid in shares.As David Israel, head of employment at law firm Royds Withy King, says, “the City has become adept at the use of deferral mechanisms for remunerating its executives”.It is also not unusual for banks to award incoming dealmakers with benefits that have been left behind from their previous employer. In fact, Luke Hildyard, director of the High Pay Centre, says that these arrangements are actually very common at an executive level.What is uncommon, however, is for this practice to get so much publicity – because bonus arrangements usually happen behind closed doors.last_img read more

On edge as it heads into fishing season, Bristol Bay has its first resident coronavirus case

first_imgCoronavirus | Southwest | State Government | TransportationOn edge as it heads into fishing season, Bristol Bay has its first resident coronavirus caseMay 20, 2020 by Isabelle Ross, KDLG – Dillingham Share:Bristol Bay in 2017. (Photo by Avery Lill/KDLG)The first Alaskan from the Bristol Bay/Lake and Peninsula region has tested positive for COVID-19. The state has not disclosed which community they are from because it has less than 1,000 residents.The case is not associated with the seafood industry, and the person wasn’t tested in their home community, according to Louisa Castrodale with the Department of Health and Social Services. It was not clear where the person is currently located.On May 15, Dillingham saw its first case of the disease, but that person was a seasonal seafood worker, not a resident of the region. So far, 402 Alaskans have tested positive for COVID-19, with 352 recoveries. The total number of non-resident cases is up to 12. That includes two new instances of seafood workers who tested positive for the virus in Anchorage.The communities around Bristol Bay have been anxiously gearing up to deal with COVID-19 cases over the last few months. The Bristol Bay Area Health Corporation runs the hospital in Dillingham, as well as village clinics in 28 communities.Dr. Anne Zink, the state’s chief medical officer, said at a recent news conference that the state is collaborating with federal agencies to secure additional testing for areas like Bristol Bay, where thousands of fishermen and processing workers travel to participate in the sockeye fishery. Bristol Bay Area Health Corporation is distributing several additional testing machines to villages around the region.Local and state officials have said that the response to Dillingham’s first positive case last week demonstrates that processor health protocols, as well as the local ordinances and state mandates, are effective. The state also says it is providing testing at the Anchorage Airport. But some residents still feel that communities aren’t adequately prepared for the commercial fishing season. A group of regional entities published a letter Saturday calling on the state to mandate pre-arrival testing for incoming fishermen.Bristol Bay leaders express concern over Alaska’s commercial fishing health mandateShare this story:last_img read more

News / Leisure Cargo files for insolvency after loss of major contracts

first_img Leisure Cargo (LC) is to enter insolvency following the loss of contracts with TUI and another carrier.Aspokesperson for the GSSA confirmed to The Loadstar it had begun insolvency proceedings at a court in Dusseldorf, with White & Case appointed trustees.Reorganisation manager Tillmann Peeters, of Falkensteg Restrukturierung, said: “We want to stabilise business operations quickly and continue as smoothly as possible.“Together with the provisional trustee, we will explore the remediation options as swiftly as possible, and as thoroughly as necessary, during the June-August bankruptcy period.” By Alexander Whiteman 11/06/2019 Rumours had been circulating for some time that LC was struggling after TUI dropped it, moving to competitor ECS Group.A GSA source said: “The serious setback LC suffered last year was the loss of all airlines flying under the TUI umbrella. LC couldn’t cover these losses.“And the Thomas Cook group announced an embargo for freight bookings with LC, due to the unclear situation – Condor being the major carrier.”Another source indicated that Thomas Cook may have also approached ECS.It is thought that Condor is now deciding between ECS and World Cargo Solutions, another GSA set up by the founder and managing director of Leisure Cargo, Ralf Ausländer, which he managed alongside LC.“[The loss of] order volumes of this magnitude cannot be compensated by Leisure Cargo in the short term, not least due to the declining freight business,” said Mr Peeters.“Customers should continue to benefit from well-established processes and the skills, competences and competences of the company and its employees.”Following the collapse of owner Air Berlin – which accounted for some 20% of its operations – in 2017, LC was taken over by Berlin’s Zeitfracht Group.Zeitfracht re-installed Leisure Cargo’s founder, Ralf Ausländer as managing director, but after the company began to lose major contracts, Zeitfracht was no longer willing to subsidise it, preferring to focus on wet-leasing and passenger operations with its own regional airlines, said the source.At one point LC ran freight operations for some 14 leisure and low-cost carriers.center_img © Richair last_img read more

Armed with science (and snark), a gynecologist takes on Trump, Goop, and all manner of bizarre health trends

first_img Armed with science (and snark), a gynecologist takes on Trump, Goop, and all manner of bizarre health trends Heavyweights Daily reporting and analysis The most comprehensive industry coverage from a powerhouse team of reporters Subscriber-only newsletters Daily newsletters to brief you on the most important industry news of the day STAT+ Conversations Weekly opportunities to engage with our reporters and leading industry experts in live video conversations Exclusive industry events Premium access to subscriber-only networking events around the country The best reporters in the industry The most trusted and well-connected newsroom in the health care industry And much more Exclusive interviews with industry leaders, profiles, and premium tools, like our CRISPR Trackr. [email protected] 

Dr. Jen Gunter often tweets while walking her partially blind cat, Luna. By Meghana Keshavan Aug. 4, 2017 Reprints @megkesh Log In | Learn More Meghana Keshavan Biotech Correspondent Meghana covers biotech and contributes to The Readout newsletter.center_img Unlock this article by subscribing to STAT+ and enjoy your first 30 days free! GET STARTED She tweets while she’s walking Luna, her nearly blind cat. (Yes, walking her. On a leash.) And while she’s at home, waiting for the sourdough to rise. She blogs while she’s directing her two teenage sons to fold the laundry.In posts that careen between empathy, outrage, and snark, Dr. Jennifer Gunter presses a provocative crusade to protect women’s health, preserve reproductive freedoms — and, while she’s at it, dismantle all the dubious, dangerous medical advice she comes across in the wilds of the internet. (No, she recently explained to her male readers, you should not forgo condoms in favor of taping your penis shut during sex.) What is it? What’s included? STAT+ is STAT’s premium subscription service for in-depth biotech, pharma, policy, and life science coverage and analysis. Our award-winning team covers news on Wall Street, policy developments in Washington, early science breakthroughs and clinical trial results, and health care disruption in Silicon Valley and beyond. About the Author Reprints GET STARTED Tags Congressinsurancepediatricsphysicianspolicyprofilessexual healthwomen’s healthlast_img read more

North Korea Launches Drugs Crackdown

first_img An inside North Korean source has reported the launch of a renewed movement to expose and punish drug crime.The source explained during a phone interview with The Daily NK on August 26th, “Starting August 20th, a compulsory public lecture has been given by National Security Agency personnel in each neighborhood office. Party instructions regarding a mass struggle to prevent drug and smuggling crime were introduced there.”The lectures were attended by people’s unit members, with the exception of workers. It is standard practice for the same lecture to be given in work places separately.The source added, “As the Chosun Workers’ Party Delegates’ Conference approaches, the number of cases in which National Security Agency agents are directing the education of citizens is increasing. Here, they emphasized that there will be strict legal action and punishment for those who take, sell or smuggle drugs in that jurisdiction.” The People’s Safety Ministry has apparently also dispatched separate task forces to major cities along the Yalu River to hinder smuggling. They are currently trying to bring the border area under control.The source reported, “Just within Hoiryeong there are 40 ‘task force’ personnel under the People’s Safety Ministry cracking down on illegal immigration and drug smuggling.”The fact that North Korean citizens living in the border area regularly take drugs or engage in smuggling is not news.The smuggling route between Sinujiu, Hyesan, Hoiryeong and Onsung to China came into being during the March of Tribulation in the late 1990s. Pharmacists and doctors started mass-producing methamphetamines (known locally as “Ice”) and sold it in China to survive, but now many, indeed some say most, foreign currency earning units are producing, distributing, and smuggling the drug.Among the more affluent people living in the border area near the Tumen River, “Would you like some Ice?” is a common greeting. Many such people also take Ice as a painkiller, not least because it is among the few widely available drugs which can do the job. Furthermore, use of the drug has also spread to affluent teenagers, which is creating even more concern.Currently, in major regional cities like Hamheung and Chongjin, one dose of Ice sells for between 3,000 and 5,000 North Korean won. By Yoo Gwan Hee – 2010.08.27 11:14am RELATED ARTICLESMORE FROM AUTHOR NewsEconomy North Korea Launches Drugs Crackdown News News AvatarYoo Gwan Hee center_img Facebook Twitter There are signs that North Korea is running into serious difficulties with its corn harvest North Korea Market Price Update: June 8, 2021 (Rice and USD Exchange Rate Only) SHARE News US dollar and Chinese reminbi plummet against North Korean won once againlast_img read more

Rural Communities to Benefit from $14 Million in Grant Funding

first_imgRelatedRural Communities to Benefit from $14 Million in Grant Funding Rural Communities to Benefit from $14 Million in Grant Funding UncategorizedDecember 10, 2006 FacebookTwitterWhatsAppEmail Communities in rural Jamaica are to benefit from $14 million in grant funding from the Jamaica National Building Society (JNBS) Foundation, to undertake projects that will spur community development.Giving details of the project at a public forum in Morant Bay, St. Thomas recently, JNBS Eastern Regional Manager, Elroy Flowers, informed that one million dollars would be allocated per parish for small projects that have the potential to generate income and employment.“This is one of the ways through which we hope to make a difference in the various communities .so community groups can then approach the foundation for funding to assist them,” he stated.“There is nothing special in it for JNBS. All we are doing is trying to spur development in rural communities, help create a spirit of advocacy and as a corporate citizen, give something back to Jamaicans for the years of support given to the building society,” he added.Mr. Flowers informed that applications for funding must come from community-based organizations and not from individuals and the projects must be income and employment generating, self-sustaining and have clear benefits to the community.A five-member committee is to be established to assess the project applications that come in and give the final approval for funding.The committee, though not yet formed, would be relying heavily on the resources of the Social Development Commission (SDC), which has an effective community-based infrastructure.Community Development Officer with the SDC, Nikima Leslie, told JIS News that the organization, over the years, has been instrumental in bringing together communities and state or private sector agencies, to find solutions for problems or to help chart a course for development.“We have the grass-root connections, we are known for the work we do so it is a good collaboration and we will happily work with JNBS in deciding which projects they would want to assist and help communities to prioritize”, she stated.The SDC has a network of community-based organizations, which operate at the local level, community-based committees, which function at the zonal level, and development area committees, which operate at the parish level. RelatedRural Communities to Benefit from $14 Million in Grant Fundingcenter_img RelatedRural Communities to Benefit from $14 Million in Grant Funding Advertisementslast_img read more

Genesis to introduce a brace of SUVs in the next two years

first_img We encourage all readers to share their views on our articles using Facebook commenting Visit our FAQ page for more information. Details are slim but it’s a safe bet the small SUV will be available with at least the 2.0-litre turbo-four found in the sedan. Plugging the hawt 3.3-litre twin-turbo six would shake up the segment in a big way. Don’t expect the G70’s stickshift transmission, though.As for the all-wheel-drive crossover already announced, we know it will be called the GV80 and share most of its platform details with the G80 sedan. That machine is available with a 3.8-litre V6, that 3.3-litre twin-turbo or a 5.0-litre V8, by the way. A hybrid version wouldn’t be totally surprising, either.Genesis is taking the tried-and-true alphanumeric approach to naming its vehicles, appending a G to their sedans and a GV to their forthcoming crossovers. One assumes they couldn’t use GX thanks to some sort of copyright claim by Lexus. Trending Videos COMMENTSSHARE YOUR THOUGHTS PlayThe Rolls-Royce Boat Tail may be the most expensive new car everPlay3 common new car problems (and how to prevent them) | Maintenance Advice | Driving.caPlayFinal 5 Minivan Contenders | Driving.caPlay2021 Volvo XC90 Recharge | Ministry of Interior Affairs | Driving.caPlayThe 2022 Ford F-150 Lightning is a new take on Canada’s fave truck | Driving.caPlayBuying a used Toyota Tundra? Check these 5 things first | Used Truck Advice | Driving.caPlayCanada’s most efficient trucks in 2021 | Driving.caPlay3 ways to make night driving safer and more comfortable | Advice | Driving.caPlayDriving into the Future: Sustainability and Innovation in tomorrow’s cars | virtual panelPlayThese spy shots get us an early glimpse of some future models | RELATED TAGSGenesisSUVLuxury CarsLuxury VehiclesNew Vehiclesgenesisgv70gv80 See More Videos advertisementcenter_img Buy It! Princess Diana’s humble little 1981 Ford Escort is up for auction An engagement gift from Prince Charles, the car is being sold by a Princess Di “superfan” South of the border, a market which drives many product decisions in this country, Genesis dealers have been crying out for more product after a production blip earlier this year. Despite having nary a crossover to offer, the brand doubled its sales last month compared to the same timeframe twelve months ago. Once these crossovers hit, expect that number to continue an upward trend. Trending in Canada The Rolls-Royce Boat Tail may be the most expensive new car ever If there’s one thing sorely missing from the Genesis brand’s showrooms, it’s a crossover or three. In a market thirsty for tall wagons with traction at all four corners, the Genesis cupboard is more than a little bare.On today’s sales call reporting on monthly earnings, we learned this oversight is about to be rectified with a pair of crossover vehicles.COO Erwin Raphael told assembled reporters that, in addition to the G80-based rig set to debut in about a year’s time, a compact crossover built on the excellent G70 platform will appear. ‹ Previous Next ›last_img read more

Take a nap or push on through?

first_imgCategories:Mind & BodyCampus Community Published: Feb. 5, 2016 A nap always sounds like a good idea. However, sometimes naps can cause side effects like feeling groggy and restless later on. Everything from when and where we nap to why and for how long play into hitting that sweet spot for the perfect nap—or knowing we have to push on through. Consult this month’s issue of Student Health 101 online magazine to find out whether a nap is in your future.center_img Share Share via TwitterShare via FacebookShare via LinkedInShare via E-maillast_img read more

Healthy Buffs: Overcoming feelings of being overwhelmed

first_imgShare Share via TwitterShare via FacebookShare via LinkedInShare via E-mail As we get further into the semester we might feel pressure from all different directions. While it’s important to be aware of our responsibilities, we also need to look out for ourselves and our energy. Here’s how to overcome feelings of being overwhelmed.Reality checkingThe first step is to become mindful of whatever it is we feel overwhelmed by. It can be helpful to write out a list of everything on our minds, like upcoming tests, projects, job stress or relationship issues. However, the act of getting our list onto paper lets us take a deep breath for a moment knowing we can return to the list at any time. It also helps us make an objective, mindful plan for moving forward.Being mindful isn’t necessarily feeling calm or blissful—rather, it’s about being present and aware of what’s going on for us. Looking at the list in front of us, we can be aware of how we’re feeling (anxious, tired, excited, etc.) and start to break things into smaller, more manageable pieces.For example, if the most stressful item on the list is an assignment, check in about why it feels so daunting—maybe it feels like there’s too much to do and not enough time to do it. Once we’re aware of the source of our stress—the size of the project—we can break it up into smaller tasks, like going to office hours with a professor, doing half an hour of research to start, or writing an intro paragraph.If the stressor is something like a fight with a friend, it’s good to acknowledge what we can and can’t do to make it better. We can reach out and arrange a time to talk things out, but that may mean we don’t meet up for a few days. If we’ve taken the first step but won’t be able to resolve things until then, we can take a break from the issue until it’s time to address it with the friend.Prioritizing life needsWhen we start feeling overwhelmed, even the simple things can take a hit. The best way to minimize the impact of stress is by getting back on track. This means checking in with ourselves according to the HALT acronym: are we Hungry, Angry, Lonely or Tired? If so, these needs should be taken care of before anything else.For example, if we’re hungry, putting off dinner to keep studying won’t help us in the long run (and might make the last stretch of work unbearable). If we’re tired, we need to get sleep—even if it means not finishing up an assignment until tomorrow. These basic needs are in our control, and taking care of them keeps us functioning and empowered to accomplish the other items on our list.  Doing the next right thingSam Randall, program manager at the CU Collegiate Recovery Center (CUCRC), understands how things can pile up and leave us feeling at a loss. When we’re looking at our list, or our minds are racing and we’re feeling overwhelmed, she advises focusing on the “next right thing.”This means looking at the situation we’re in and focusing on the next simple step that feels right for us. Sometimes it’s dealing with our basic needs like eating; other times it’s tackling the first item on our list like emailing a professor. When we focus in, we can give our full attention and energy to taking that first step: doing the next right thing.If the next right thing feels too hard to pin down, check in again. What feels the most overwhelming? Can we break it down into pieces? Can we tackle any of it right now? Most importantly, have we done a HALT check-in and taken care of our basic needs?Repeating this check-in process any time we’re overwhelmed can help us identify the next right thing. And then, when we’re ready, the next one. Getting supportEveryone goes through periods of stress and feeling overwhelmed. If you’re interested in learning more about how to work with your mind and move forward, check out our free workshops from Counseling and Psychiatric Services (CAPS):Getting It DoneFeel Better FastFeel Good FridaysRecovery MindThe Healthy Buffs series is brought to you by Wardenburg Health Services. Visit us online at Published: Feb. 15, 2017 center_img Categories:Healthy BuffsCampus Communitylast_img read more

Castello di Amorosa Acquires Pillow Road Vineyard

first_imgEmail AdvertisementCalistoga winery adds distinguished Russian River Pinot Noir vineyard to estate vineyard holdingsCalistoga, Calif. (October 2, 2015) – Castello di Amorosa announced today that it has purchased a 12 acre Pinot Noir vineyard on Pillow Road in Sonoma County’s Russian River Valley in the Green Valley appellation.With this acquisition, Castello di Amorosa expands its presence in California’s renowned North Coast wine region to include 33 acres planted to Pinot Noir in vineyards located in a number of key American Viticultural Areas (AVAs) including a 12-acre vineyard in Boonville, a 4-acre vineyard in the Sonoma Coast and a 5-acre vineyard in Los Carneros.“The Pillow Road area is known for producing exceptional quality Pinot Noir and we look forward to making elegant, luxurious wines from this vineyard,” said Brooks Painter, Director of Winemaking. “We are excited to add Pillow Road Pinot Noir to our expanding portfolio of distinguished Pinot Noir,” he added.The Pillow Rd. vineyard site benefits from its proximity to the Pacific Ocean breezes and the Russian River’s cool foggy mornings and sunny, warm days, providing the perfect setting for growing Pinot Noir.  The vineyard is planted with 115, 777 and Pommard 4 clones in Gold Ridge sandy loam soil, with 9 by 5 spacing. The vineyard will be farmed sustainably under the direction of Castello di Amorosa’s Vineyard Manager, David Bejar.The winery anticipates the first release of wine from this vineyard to be the 2015 vintage which will be released in 2017; the Pillow Road vineyard’s grapes will become one of the several vineyard-designated wines in Castello di Amorosa’s portfolio.About Castello di AmorosaFollowing fourteen years of construction, Dario Sattui opened Castello di Amorosa in April of 2007.  Situated in the hills above Calistoga, Castello di Amorosa – a family-owned business – produces world-class wines including popular white and red wines as well as proprietary Italian-inspired blends, including Il Barone, La Castellana, and Il Passito. Wines are sold only at the winery.  The castle winery was made with brick, wood and iron imported from Europe and combined with over 8,000 tons of local Napa Valley stone.  Today, Castello di Amorosa, a popular Napa Valley destination, offers a variety of wine tastings and winery tours in a unique Tuscan castle setting.For more information, please visit the history of Castello di Amorosa: TAGSCastello di Amorosafeatured Share Pinterest Home Industry News Releases Castello di Amorosa Acquires Pillow Road VineyardIndustry News ReleasesWine BusinessCastello di Amorosa Acquires Pillow Road VineyardBy Press Release – October 5, 2015 78 0 Facebook Twitter ReddIt Previous articleTapp Label Appoints Gerald Hauprich as Chief Financial OfficerNext articleWine Spectator Learning Center Recognized Regionally with Latest Donation Press Release Linkedinlast_img read more