Thursday, August 16, 2012

Scandals cut into Wall St. bonuses


Wall Street bonuses should rise moderately this year, but less than previously expected due in part to high-profile scandals at some big banks, according to a report released yesterday by compensation consulting firm Johnson Associates, Reuters told us.

The firm estimated bonuses will be flat or possibly rise by as much as 5 percent across Wall Street, lower than the 5 percent to 15 percent increase Johnson Associates forecast in May.
The 2012 bonuses of senior executives will increase in a 0-to-10 percent range compared with the previous year, the firm estimates.

The reductions are due partly to weaker-than-expected revenue. Big banks, including Goldman Sachs Group, Morgan Stanley and Bank of America, have all outlined plans to cut costs.
But Johnson Associates also highlighted recent Wall Street scandals as a reason compensation might be lower at some firms caught in the headlines.


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