Stock Market Cafe
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
No Result
View All Result
Stock Market Cafe
No Result
View All Result
Home Trading News

Wall Street bankers and traders are set for biggest bonuses since Great Recession

by
November 16, 2021
in Trading News
0
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter

RELATED POSTS

The U.S. Carries $33 Trillion in Debt. How It Stacks Up to the World.

ARK Invest’s Cathie Wood Says Nvidia Is ‘Really Expensive’ And ‘Very Obvious’ — Here Are 2 Less Obvious AI Plays She’s Betting On

The Wall St. sign is seen near the New York Stock Exchange (NYSE) in New York City, May 4, 2021.

Brendan McDermid | Reuters

Wall Street is set to see the highest bonuses since the Great Recession after a busy and profitable 2021, according to a report from pay consultancy Johnson Associates.

Booming deal activity, a hot IPO market and climbing equities mean bankers and traders are in line for outsized performance-based compensation, the report released Tuesday said.

But the sharp rebound in business activity this year has translated to unprecedented workloads for Wall Street professionals — and a competitive job market as companies prepare to shell out a premium to retain top talent and nab new hires.

Firms are “very concerned about turnover, even though pay is going to be up significantly,” Johnson Associates managing director Alan Johnson told CNBC.

Johnson Associates used public data from banks and asset management firms, along with proprietary insights from clients, to calculate the projected year-end incentives on a headcount-adjusted basis. Some investment banks, including Goldman Sachs, disclose how much management has set aside for employee compensation in quarterly earnings reports.

Overall bonuses for investment banking underwriters are forecast to jump 30% to 35% from the year prior. For investment banking advisors and equities traders, that year-over-year jump is estimated at 20% to 25%. Johnson Associates also predicts bonuses for private equity, asset management and hedge fund roles will see double-digit increases.

Investment Banking
(Underwriting)30% to 35%Sales & Trading
(Equities)20% to 25%Investment Banking
(Advisory)20% to 25%Private Equity (Mega)15% to 20%Private Equity (Mid/Large)12% to 18%Firm Management12% to 18%Asset Management12% to 18%Hedge Funds10% to 15%High Net Worth10% to 15%Staff Positions10%Retail & Commercial Banking5%Sales & Trading
(Fixed Income)Minus 5% to flat

(Source: Johnson Associates)

The estimated record bonuses, which include cash and equity awards, come after a pandemic-ridden 2020 saw activity slow and year-end incentives decline for many bankers, although traders benefited from strong trading volumes fueled by the Federal Reserve’s steps to calm markets.

In contrast, “the business results this year have been outstanding,” Johnson said.

Business activity is expected to remain strong and keep incentives elevated next year, though growth will likely slow, according to Johnson.

“I don’t think [bonuses] are going to go up as much next year. … I think this was a spurt,” he said. “But the view is ’22 will be a really good year.”

Not only are bonuses on the rise, but base salaries are set to climb, too. While Wall Street has long preferred to compensate its workers with performance-based year-end bonuses, the competitive market labor landscape and inflation are pushing base pay higher.

After heightened attention on junior banker culture this year, firms across the Street hiked pay floors with Goldman Sachs raising salaries for their entry-level investment banking roles from $85,000 to $110,000.

Base salaries across the financial services industry could rise well over 3%, and even upward of 7%, according to Johnson.

“Base salaries are more important than ever,” he said.

–CNBC’s Hugh Son contributed to this report.

ShareTweetPin

Related Posts

The U.S. Carries $33 Trillion in Debt. How It Stacks Up to the World.

by
September 29, 2023
0

ARK Invest’s Cathie Wood Says Nvidia Is ‘Really Expensive’ And ‘Very Obvious’ — Here Are 2 Less Obvious AI Plays She’s Betting On

by
September 29, 2023
0

Nike soars on first quarter earnings, confidence in Chinese consumer regardless of ‘macroeconomic outlook’

by
September 29, 2023
0

Friday: Personal Income and Outlays

by
September 29, 2023
0

At Age 99, Charlie Munger Has These Words Of Wisdom For Investors: ‘Sometimes It’s A Boom. Sometimes It’s A Bust.’ Here’s How To Spot The ‘Boom’.

by
September 28, 2023
0

Next Post

NAHB: Builder Confidence Increased to 83 in November

Industrial Production Increased 1.6 Percent in October; Back to Pre-pandemic Levels

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

email

Get the daily email about stock.

Please Enter Your Email Address:

By opting in you agree to our Privacy Policy. You also agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

MOST VIEWED

  • Crocs sees fourth-quarter sales up 42%, CEO Andrew Rees says 2021 was ‘exceptional year’

    0 shares
    Share 0 Tweet 0
  • Biden didn’t accept Putin’s ‘red lines’ on Ukraine – here’s what that means

    0 shares
    Share 0 Tweet 0
  • Ford partners with GlobalFoundries to increase chip supplies

    0 shares
    Share 0 Tweet 0
  • CEOs across the market, economy agree on one big 2022 prediction: More volatility

    0 shares
    Share 0 Tweet 0
  • Inflation is sticking around – and Biden will likely have to wait it out like the rest of us

    0 shares
    Share 0 Tweet 0
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy
All rights reserved by www.stockmarket-cafe.com
No Result
View All Result
  • Home
  • Trading News
  • Email Whitelisting
  • Privacy Policy

All rights reserved by www.stockmarket-cafe.com