Partners at BTG Pactual forgo second-half bonus -source
By Tatiana Bautzer
SAO PAULO Dec 15 (Reuters) - Partners at Grupo BTG Pactual SA have voluntarily waived their right to earn bonuses for the second half of the year, as the embattled Brazilian investment bank races to bolster cash and instill confidence following the arrest of founder André Esteves, a source with direct knowledge of the situation said on Tuesday.
The amount of profit that BTG Pactual sets aside for second-half payouts, as well as the release of metrics for individual compensation, is calculated and disclosed to employees at the end of the calendar year, and is payable in February. BTG Pactual pays bonuses twice a year, with first-half compensation disbursed in August.
This time, BTG Pactual will set aside the money for bonuses at the end of January and payouts will be made in February, said the source, who requested anonymity as the bank's compensation policies are not public. Employees who do not own BTG Pactual stock will be the only ones eligible for payouts, the source added.
BTG Pactual declined comment.
The bank was forced to sell assets, dismantle equity and derivatives trading positions, and cut new loans after Esteves was arrested for allegedly seeking to obstruct a sweeping corruption probe in Brazil. Before his detention, BTG Pactual had paid record bonuses in spite of weak Brazilian capital markets.
BTG Pactual obtained 6 billion reais ($1.6 billion) in emergency credit from Brazil's deposit guarantee fund as the Nov. 25 arrest of Esteves triggered client fund withdrawals and drove borrowing costs higher. The stock is down 55 percent since the detention.
Valor Econômico newspaper reported on Tuesday that the bank's 64 senior partners and 175 associates would not get bonuses for the year.
($1 = 3.8749 Brazilian reais) (Editing by Guillermo Parra-Bernal and Leslie Adler)
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