Bonuses for traders after sale of BIAM to US giant
TRADERS at Bank of Ireland Asset Management (BIAM) are to enjoy a return to regular bonuses after the unit's sale to US giant State Street closed yesterday.
BIAM came under fire before Christmas when it emerged that one of its top executives had enjoyed a six-figure bonus last year, prompting fury at the Department of Finance.
BIAM's bailed-out owner Bank of Ireland insisted that the payment had to be made and was not the norm.
BIAM's new owner State Street yesterday confirmed that the asset manager would pay "competitive" remuneration, which "typically includes a base salary and a performance-related pay component".
But while BIAM's staff will be relieved to return to backlash-free bonuses, the prospect of cuts among the asset manager's 120-man staff remains.
A State Street spokesman last night said the company would "endeavour to create operating efficiencies", but stressed that any restructuring was "likely to be minimal" and would "occur only after careful review".
In a statement yesterday, State Street said that BIAM was managing assets worth €26m at the end of 2010. State Street is paying €57m for the business, inclusive of net assets worth €14m.