Macquarie’s new crackdown on bonuses isn't just about caving into public pressure and regulating risk-taking behaviour – the firm also wants its staff to stick around for longer.

The firm has responded to widespread criticism of banking compensation by reducing the cash competent of its bonus scheme and moving more of the money into longer-held equity arrangements.

Under the new plans, chief executive Nicholas Moore will have 60% of his bonus retained and spread over future years. Other bigwigs will now only receive 50% cash, down from 60% to 80% last year.

Linking executive performance to the value of Macquarie shares over the longer-term should (in theory at least) aid retention as bankers stay on board to reap greater rewards over several years.

But can a bonus revamp really help i-banks - like Macquarie and UBS - keep their talent? The answer is probably “no” in the short-term and for juniors, and “maybe” for senior staff.

“Bonuses from 2008 won’t be that large when spread over five years, so people who leave a bank this year won’t be missing out on as much money as they will when the market picks up in the future,” says Luke Heath, chief executive of Chandler Heath Executive Recruitment.

And most employees today will choose to stay put because of the unfavourable job market, not because they feel tied to their firm’s retained bonus scheme, says Trevor Bradley, divisional manager, financial services, at recruiters Chandler Macleod.

“Base salaries are becoming more relevant to candidates than bonuses. And in the current market, job security is a more important issue than compensation,” he adds.

Macquarie’s new plan is likely to have a greater retention effect on senior staff who have a long tenure and have a larger bonus to lose if they move, says Heath. And it will potentially make it harder for rival banks to buy out high-performers.

Bradley comments: “Senior bankers might think twice before moving, if their bonuses are weighted towards equities. And if they do go elsewhere, they will seek to negotiate packages to off set what they are giving up in retained bonuses.”

Juniors are less concerned about retained bonuses, says Heath. “So when the market improves the best and brightest associates will still be interested in moving.”

“Associates wanting to jump ship won’t let a retained profit share put them off pursuing a better opportunity elsewhere,” adds Bradley.