Wall Street banks are deflating pay expectations to avoid a
replay of last year when cutbacks on bonuses and increased deferrals surprised
bankers and traders, according to a report in Businessweek.
Almost 20 percent of employees won’t get year-end bonuses,
according to Options Group, an executive-search company that advises banks on
pay. Those collecting awards may see payouts unchanged from last year or
boosted by as much as 10 percent, compensation consultant Johnson Associates
Inc. estimates. Decisions are being made as banks cut costs and firms including
UBS AG (UBSN) and Nomura Holdings Inc. (8604) fire investment-bank staff.
Some employees were surprised as companies chopped average
2011 bonuses by as much as 30 percent and capped how much could be paid in
cash. That experience, along with public statements from top executives, low
trading volumes in the first half and a dearth of hiring has employees bracing
for another lackluster year, consultants and recruiters said…..
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