Southpaw: Beware the mid-year review as banks get tougher on performance

Compensation regulation is putting banks in a tricky position when it comes to staffing — but not in the way one would expect. The issue is not how to pay top performers, but how to deal with a fixed cost base that is rising as banks shift the emphasis towards salaries while the revenue base remains as variable as ever. One answer is a mid year review with teeth, as David Rothnie writes.