Wall Street professionals are expected to receive lower year-end incentive payouts compared to 2010, according to an annual compensation analysis.
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Get Your Report Now!The Johnson Associates third quarter compensation analysis shows that year-end incentives, which include cash bonuses and equity awards, will decline by an average 20 to 30 percent this year compared to 2010.
Fixed income traders will be the hardest hit, with their year-end incentives expected to decline by as much as 45 percent.
Equities traders and senior management will see their year-end bonuses trimmed by up to 30 percent while year-end payments for investment bankers will fall by 20 percent, according to the report.
Incentives for the rest of the financial services industry, including asset management, high net worth, retail banking and prime brokerage will be flat or slightly lower or higher than last year.
Compensation Outlook for 2012
“Looking ahead to 2012, we expect to see a modest recovery in many segments of the financial services industry. Barring further economic weakness or major collapses among banks or foreign countries, bonuses for investment and commercial bankers and those in asset and wealth management and alternatives could jump by 15 percent or more next year. Additionally, firms will continue to reduce headcount in the United States but will add to staff in emerging markets where many companies are expanding their business operations,” concluded Alan Johnson, managing director of Johnson Associates.
Source:
Johnson Associates, Inc.