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Rothschild & Co | Annual Report 2017
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1. Overview
4. Financial statements
3.
Management report
2. Business review
The information collected covers the period from 1 January 2017 to
31 December 2017, except for data relating to Section 5.2.2 which covers
the period from 1 April 2017 to 31 December 2017. Data is also provided
for the 2016/2017 financial year in order to allow a comparison between
those periods of 12 months, given the change of fiscal year from 31 March
to 31 December.
3 Human Resources information
3.1 Our people
By geography
(1)
31/12/2017 31/03/2017
United Kingdom and Channel Islands
964
946
France
(2)
1,180
1,202
Switzerland
365
363
Other Continental Europe
387
332
North America
320
282
Rest of the world
286
285
Total Group
3,502
3,410
By business
31/12/2017 31/03/2017
Global Advisory
1,324
1,271
Private Wealth & Asset Management
1,245
1,332
Merchant Banking
125
106
Specialist Finance
24
40
Central & Support
784
661
Total Group
3,502
3,410
Employee age profile
(3)
31/12/2017 31/03/2017
< 30 years
22.2%
22.8%
30 to 39 years
32.2%
32.9%
40 to 49 years
26.7%
25.6%
> 50 years
18.9%
18.8%
Total Group
100.0% 100.0%
Employee gender profile
31/12/2017 31/03/2017
Male
61.0%
60.7%
Female
39.0%
39.3%
Total Group
100.0% 100.0%
A global team of talented individuals from a
diverse range of backgrounds and cultures
Rothschild & Co attracts, develops and retains some of the industry’s
brightest minds. The Group strives to create an inclusive culture that
encourages the highest standards of quality, professionalism and ethics.
Rothschild & Co has over 3,500 employees across the world, of whom 39%
are female. The team is truly global; Rothschild & Co draws on local talent
from each of the 43 countries in which it is based and beyond, hiring and
developing the best each region has to offer.
Rothschild & Co offers structured Graduate and Internship programmes
in its Global Advisory, Private Wealth, Merchant Banking and Asset
Management businesses, for both students in their final year of university
(or French
grande école
) and those who have already graduated. This year,
111 students were hired and placed onto the Global Graduate Training
Programme. A large number of the graduates had completed an internship
with a Group business entity prior to joining the full-time programme
and the remainder were hired via our online and campus recruitment
campaigns. We have a keen focus on diversity for all our Internship and
Graduate programmes.
Rothschild & Co also recruits experienced professionals to help grow
its business and in order to fill critical gaps in our succession planning.
However, our key focus is always to offer growth potential and progression
to our employees internally, and as such we keenly promote internal mobility
as a first priority. When Human Resources do recruit externally, candidates
are sourced in partnership with our Business Unit Heads and Departmental
Managers. Human Resources also work with specialised recruitment
agencies/head-hunters to identify candidates, again considering the
broader diversity of the candidates selected.
During the 2017 financial year, the number of redundancies represented
0.6% of the total headcount, and the aggregate number of new joiners was
518 including the graduates mentioned above.
3.2 Remuneration
The Group’s remuneration policies, procedures and practices are in
line with Rothschild & Co’s business strategy, objectives, values and
long-term interests and are designed to promote sound and effective risk
management. The Remuneration and Nomination Committee, a specialised
committee of the Supervisory Board of Rothschild & Co, is responsible for
overseeing remuneration related matters in accordance with principles
defined in the Group’s remuneration policy.
Rothschild & Co rewards its people at a total compensation level, paying
fixed and variable compensation. The Group ensures that fixed and variable
components of total compensation are balanced appropriately.
Fixed compensation is driven by the local market for the role taking into
account responsibilities, skills and experience, and annual variable
compensation is awarded on a discretionary basis, driven by a combination
of the consolidated results of Rothschild & Co and the financial performance
of the business division in which an individual works as well as local market
competitiveness and is then truly differentiated based on individual
performance against financial and non-financial metrics.
In some cases, the Group operates arrangements to defer a proportion
of variable compensation over three years. For the regulated population,
part of this deferral is awarded in non-cash instruments.
Detailed information is presented in the consolidated financial statements,
on page 161, under Note 27 “Operating expenses”.
(1) A presentation of all the Group’s office locations is set out on pages 12–13.
(2) Except as indicated in Section 2.2 above, the data set out in this table and in the second paragraph below this table includes Martin Maurel employees following the merger between Rothschild & Co
and Compagnie Financière Martin Maurel. For the avoidance of doubt, the other HR data in Section 3 does not include the employees from the Martin Maurel group.
(3) Age distribution based on 91% of data.