Fleming weighs in against Deutsche
Friday 28 June 1996
Robert Fleming, the merchant bank, added its voice yesterday to critics of Deutche Morgan Grenfell's aggressive recruiting policy in the City, which has been widely blamed for driving up salaries and bonuses.
John Manser, chief executive of Flemings, said Deutsche's policy was "rather extraordinary," but added that the damage was not to the City as a whole but "maybe in the long term" to Deutsche Morgan Grenfell itself. "There is always someone who wants to expand in a hurry," he said.
Mr Manser said his bank had been able to resist the pressure and its salaries, and bonus payments were not out of line with past experience.
Reporting profits before tax at Robert Fleming down to pounds 133.5m from pounds 171.9m last year, Mr Manser said the bank's overall costs, two-thirds of which were to pay for staff, had risen 11 per cent. But this was after a 5 per cent increase in staff as the bank expanded. Staff numbers have risen from 4,200 to 7,200 in three years and new offices have been opened in 16 countries. Flemings has also entered new businesses areas and invested heavily in expanding its equity research and dealing operations.
Mr Manser said: "All this has been expensive. The cost of opening new offices, recruitment and training is high. Inevitably costs rise in advance of earnings and this has been reflected in two years of falling profits."
But the period of maximum investment strain was over and the company was reaping the rewards. Profits in the last three months were substantially higher than a year earlier.
- 2 How the language you speak changes your view of the world
- 4 Italian police 'reveal' what Jesus looked like as a young boy
'Fire at every person you see': Israeli soldiers reveal they were ordered to shoot to kill in Gaza – even if the targets may have been civilians
Italian police 'reveal' what Jesus looked like as a young boy
Who should I vote for? The Independent quiz matches best political party for undecided voters ahead of the general election
First-time buyers in London 'need to earn at least £77,000'
General Election 2015: Photographic history of Bullingdon Club tracked down - including new picture of David Cameron in his finery
In defence of liberal democracy
Over 50,000 families shipped out of London boroughs in the past three years due to welfare cuts and soaring rents
EU asylum policy is 'a direct threat to our civilisation', says Nigel Farage
The Rothschild Libel: Why has it taken 200 years for an anti-Semitic slur that emerged from the Battle of Waterloo to be dismissed?
General Election 2015: UK will be 'run for the wealthy and powerful' if Tories retain power, Labour warns
Schools forced to act as 'miniature welfare states' with teachers buying underwear and even haircuts for poor pupils
iJobs Money & Business
£20000 - £25000 per annum + Uncapped commission: SThree: Can you speak German,...
£25000 - £30000 per annum + benefits: Ashdown Group: An exciting opportunity f...
£215 per day: Ashdown Group: Junior Project Manager (website, web application ...
£40-50K: Guru Careers: We are seeking an experienced Software Engineer / Softw...