Tags: Wall | Street | Bonuses | Falling

Wall Street Bonuses Seen Falling 30 Percent

Tuesday, 08 Nov 2011 08:06 AM

Warning to the 1 percent crowd: Wall Street bonuses are expected to fall by as much as 30 percent in 2011 compared with 2010, the New York Times reports.

Trading profits have slumped this year, the economy is weaker, bank layoffs are up and new regulations stemming from the Dodd-Frank financial reform bill are hiking the costs of doing business, thus cutting into compensation.

Most on Wall Street earn good salaries but the bulk of their total pay comes in year-end bonuses.

"It is disappointing," Johnson tells the newspaper. "I think we were all hoping we were out of this morass."
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Others are forecasting lower Wall Street bonuses as well, including New York State Comptroller Thomas DiNapoli.

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(Getty Images photo)
A more sluggish U.S. economy, European debt woes and new compensation mechanisms designed to curb risk taking are to blame, DiNapoli tells Bloomberg.

"When we shed jobs, over time, it will have a ripple, negative effect on other parts of our economy," DiNapoli tells Bloomberg.

After adding 9,900 jobs between January 2010 and April 2011, the securities industry cut 4,100 positions through August and may shed an additional 10,000 jobs by the end of next year, DiNapoli adds.

Wall Street cash bonuses, meanwhile, fell 8 percent last year from 2009 as financial companies disbursed $20.8 billion, Bloomberg reports.

The average Wall Street cash award for an employee came to $128,530 in 2010, a 9 percent drop and greater than the total decline because the pool was shared among more workers.

New York City will definitely feel the effects of less bonus money flowing into the local economy.

"This is a money-maker for our city and state," DiNapoli says.

"We can argue about what's the appropriate level of regulation, but we want this industry to be profitable and sustainable and to employ even more people."

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Warning to the 1 percent crowd: Wall Street bonuses are expected to fall by as much as 30 percent in 2011 compared with 2010, the New York Times reports. Trading profits have slumped this year, the economy is weaker, bank layoffs are up and new regulations stemming from...
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2011-06-08
Tuesday, 08 Nov 2011 08:06 AM
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