Wall Street will cut year-end bonuses for fixed-income and equities employees by as much as 30 percent from last year, according to revised estimates from Johnson Associates Inc.
Bonuses for fixed-income and trading department are expected to drop 20 percent to 30 percent, a reversal from a May estimate that they would rise 10 percent to 15 percent, according to the New York-based compensation consulting firm. Senior managers will probably receive bonuses that are unchanged to 30 percent lower, the firm said. The new estimates are driven by a “lack of economic recovery” as well as regulations and the “ongoing uncertainty in world markets,” according to the e-mailed report.
Wall Street firms set aside a portion of revenue to pay year-end bonuses. Goldman Sachs cut its compensation pool 9 percent in the first half from the same period last year. JPMorgan Chase ’s investment bank kept its first-half compensation expense unchanged, while Morgan Stanley said on July 21 that it set aside 10 percent more to pay bankers and traders.
Find out more at http://www.bloomberg.com/news/2011-08-12/wall-street-traders-bonuses-to-drop-as-much-as-30-this-year-study-says.html
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