Tuesday, October 12, 2010

Wall Street: The Market Environment Weak But SHOW ME THE MONEY

Dealbook reports:

Despite everything, Wall Street salaries are still on track to reach a record high for the second year in a row, a study by The Wall Street Journal has revealed.

Compensation appears to be going up faster than bank revenue, according to the report, with a pay increase of four percent, from $139 billion in 2009 to $144 billion in 2010, across the 35 firms surveyed by The Journal.
Bloomberg follows that expectations from employees are high, despite the less-than-stellar environment (bold mine):

Half of Wall Street finance professionals surveyed expect their bonuses to increase for 2010, eFinancialCareers.com found.

About 71 percent of the 2,145 people who responded to the e-mailed poll in the U.S. said they are anticipating at least an equal bonus from last year, with 50 percent expecting a bigger payout, the job-search website said in a statement. About 11 percent said their bonus will jump by at least half, according to the survey.

The percentage expecting a bigger bonus increased from 36 percent in last year’s poll, when firms faced pressure from regulators and lawmakers to rein in pay after many accepted billions in government rescue funds. Almost 60 percent of respondents cited market conditions as the biggest concern for their compensation.

So why pay?

“The signs of bonus euphoria may be hard to find, but Wall Street employers will have to deal with professionals who believe they are in contention for fatter paychecks and the inevitable retention issues should their expectations be dashed,” Constance Melrose, managing director of eFinancialCareers North America, said in the statement.
Ah... we're back to the good old days (pay because they deserve it when times are good - pay or they leave when times are bad). Lets break out the old Wall Street Bonus Matrix.

Actually, did they ever change?

No comments:

Post a Comment