Monday, October 3, 2011

Bonuses This Year Are Going To Be A Disaster

Bank bonuses this year are going to be ugly, according to Businessinsider. Dodd Frank rules, plummeting bank stocks, and a poor global economic outlook all translate to a poor outlook on banker bonuses.

At Bank of America, bonuses will be down 40-50%, according to a BofA exec who spoke to Charlie Gasparino.

They also look bad at Goldman, where according to The Australian:
[The firm made ] an internal commitment to ensure that no more than 35% to 45% of its revenue is paid to staff — a lower proportion than any other Wall Street bank.
And at all banks, a good portion of the bonuses paid to staff are perpetually losing value, because most bonuses are now awarded in bank stock... which keeps plummeting…

Read more: http://www.businessinsider.com/bank-bonuses-2011#ixzz1ZmtO2Xsl

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