Nomura Holdings Inc. is paying college graduates originally recruited by Lehman Brothers Holdings Inc. more than twice as much as those it hired on its own, two sources said.
Japan's biggest investment bank, which acquired Lehman's Asian units after the New York-based firm went bankrupt in September, will pay Lehman's recruits in Japan ¥6.5 million plus bonuses for the fiscal year that started Wednesday, the sources said, declining to be identified because the agreements are private. That compares with ¥2.4 million plus bonuses for Nomura's own recruits.
"This will cause friction," said Wataru Kasatani, a senior analyst at Meiji Dresdner Asset Management Co., which has about $2.5 billion invested in Japanese equities and owns Nomura shares. "As long as there's discord, it makes it difficult for Nomura get a return on its investment."