by Jacob Goldstein

In a recent letter, the CEO of a London investment group paints an unflattering picture of pay in "the City," London's version of Wall Street.

Barry Olliff, of the City of London Investors' Group, points to three factors that are key at most firms:

Instability, because the existing system seems to be broken. Turnover of staff around the City implies that employees do not get job satisfaction and / or that existing remuneration packages do not create loyalty.

Greed, the City is made up of many selfish people who are encouraged by management, and management's approach to remuneration, to develop egotistical tendencies. This culture of greed, in my opinion, manifests itself often via a lack of risk awareness, poor team spirit and significant key man risk.

Selfishness creates an attitude of negotiation at the point of salary, bonus and option notification. ...

 

Not surprisingly, he says that they do things differently at his firm. He says that the firm doesn't negotiate employee salaries — and adds that they're not looking for a bunch of stereotypical alpha-male bankers:

... it is better to appoint decent people, who can genuinely work in a team environment, than appoint just No. 1's. We often say, better to appoint a good No. 2 who is a decent person than a No. 1 who is greedy, political and does not consider the maintenance and development of the brand.

Hat tip: FT Alphaville