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Wall Street Pay to Drop, Schorr Says: Tom Keene

Monday, 20 Dec 2010 02:18 PM

(Corrects name spelling in headline.)

Dec. 20 (Bloomberg) -- Pay for people in bonds, currencies and commodities is likely to decline this year as firms increased hiring after a strong 2009, regulators focused on large bonuses as those markets remained “sluggish,” according Glenn Schorr, an analyst of brokerage stocks at Nomura Securities International Inc. in New York.

“The more revenues are down, the tougher it will be on compensation,” Schorr said in a radio interview today on “Bloomberg Surveillance” with Tom Keene. “We just draw the correlation between revenues and compensation: they’re inevitably tied on Wall Street and this year is no different.”

Revenue has declined between about 20 percent and 25 percent for Wall Street investment banks after “a really good 2009,” Schorr said. Subsequent hiring boosted costs since salaries and bonuses make up about 70 percent of expenses at these companies, he said.

“We have the unfortunate situation of revenues down and head count up,” Schorr said. “It makes it a difficult year to manage the expense line.”

--With assistance from Christine Harper and Ken Prewitt in New York. Editors: Paul Cox, Greg Storey

To contact the reporters on this story: Daniel Kruger in New York at dkruger1@bloomberg.net; Tom Keene in New York at tkeene@bloomberg.net

To contact the editor responsible for this story: Dave Liedtka at dliedtka@bloomberg.net

© Copyright 2017 Bloomberg News. All rights reserved.

   
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(Corrects name spelling in headline.) Dec. 20 (Bloomberg) -- Pay for people in bonds, currencies and commodities is likely to decline this year as firms increased hiring after a strong 2009, regulators focused on large bonuses as those markets remained “sluggish,” according...
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Monday, 20 Dec 2010 02:18 PM
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