Private jets grounded for Merrill’s top brass

[flashl]

Financial Times

Merill Lynch has sharply cut the use of private jets among its senior managing directors by requiring them to obtain direct clearance from the global head of investment banking to hire one and to demonstrate there is no more efficient means of transport.

The new policy is part of a drive by the Wall Street bank to reduce administration and non-payroll expenses. By bearing down on these costs, Merrill aims to give itself the scope to limit lay-offs and pay better bonuses to top performers, even as the economic slowdown eats into investment banking revenues.

...

The renewed focus on cutting non-compensation expenses does not seem to have affected the performance of Merrill’s investment banking unit, which has prospered on a relative basis, in particular in Europe. The bank leapt from eighth to third place in the European investment banking league tables in the first half of this year, according to data from Dealogic.

Merrill is far from alone in bearing down on so-called non-compensation costs. Bankers at UBS are permitted to fly business class in Europe only if the flight is three hours or longer, or five hours or longer in the US.

[Aviation Pro]

1. Wimps....

...I recently flew roundtrip on four brutal legs to New Delhi and back in economy (the first two legs were 8 hours long the second two close to 9). These tallmen with good hair are the biggest fucking wussies on the face of the Earth.