Belt-tightening is happening everywhere, even on Wall Street, where excess has always seemed to have reigned supreme. A compensation survey says bonuses for financial workers in the district are expected to fall between 20 and 30 percent this year. While those who don’t receive any work bonuses won’t shed tears for Wall Street types, at least this is a sign that the financial world is connected to reality.
The New York Times reports investment bankers will take the hardest hits, while commercial bankers and asset managers will make what they did last year. Brokers with the wealthiest clients may even see a slight increase in bonus pay.
The Johnson Associates survey, which accounts for as many as 20 firms, reflects a drop in trading profits and a rise in the cost of doing business due to Dodd-Frank regulations meant to intensify oversight of the financial industry.
Wall St. Pay Is Expected to Fall 20% to 30% [The New York Times]