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Jefferies to Reclaim Cash Bonuses If Employees Join Competitors

Jefferies Group Inc., the investment bank that boosted staff after the financial crisis, said it will claw back 2011 bonuses from any employees who defect to competitors next year.

Jefferies will award discretionary cash bonuses with one-year restrictions, requiring they be repaid if workers join a rival firm during that period, according to a memo sent to employees today. Restricted cash paid in lieu of restricted stock at the request of employees is subject to a separate 20-month clawback, Chief Executive Officer Richard Handler and Brian Friedman, chairman of the New York-based firm’s executive committee, wrote in the memo.