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Coal More Likely Than Bonuses in Some Wall Street Traders’ Stockings

By    |   Sunday, 09 Dec 2012 04:59 PM

Wall Street’s workers likely won’t receive the huge Christmas bonuses they’re used to getting, with New York State Comptroller Thomas DiNapoli estimating a 16.5 percent decline from last year’s amounts.

DiNapoli said the average bonus will be $101,000, reports the New York Post. While that’s a slight decline from last year’s, it’s a much larger drop from 2006, when the average bonus was $191,360.

The bonuses are being cut as downsizing continues. Last week, Citigroup moved to fire up to 150 people in its trading and investment-banking unit, and company-wide bonus reductions of up to 10 percent.

Editor's Note: Make 2013 the Year You Pay Zero Taxes

JPMorgan, Wall Street’s largest bank in terms of assets, said it’s bonus pool will be off by two percent, as the Options Group, an analyst firm, said one in five Wall Street workers won’t get a bonus at all.

The lack of bonuses is expected to have a huge ripple effect throughout New York’s economy, which is still struggling with the after-effects of Hurricane Sandy.

Alan Johnson, managing director of Johnson Associates,said the economic downturn and taxes are to blame, and many firms are looking to do business elsewhere as New York is expensive.

One Wall Street trader said he knows people who were let go at the end of the third quarter of the year so they wouldn’t earn a bonus.

“Unless you are lucky enough to be in one of these business lines that made money this year, you might be getting more coal than money in your stocking,” he said.

Editor's Note:
Make 2013 the Year You Pay Zero Taxes

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Wall Street's workers likely won't receive the huge Christmas bonuses they're used to getting, with New York State Comptroller Thomas DiNapoli estimating a 16.5 percent decline from last year's amounts.
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2012-59-09
Sunday, 09 Dec 2012 04:59 PM
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