[The institutions don't run up the market for nothing<g>]--Big bonuses expected for Wall Street
By Aaron Siegel
November 7, 2006
investmentnews.com
For the fourth year in a row, Wall Street's movers and shakers can expect record bonus increases.
While annual bonuses are expected to climb 10% to 15% this year for stock brokers, asset managers, senior managers and other top executives, they are likely to soar upwards of 20% for investment bankers, according to a survey released today by Johnson Associates Inc., a New York-based compensation consultant.
"Solid earnings performances by the major brokerage and investment firms this year, combined with the ongoing war for top talent, are fueling the larger incentive awards," said Alan Johnson, managing director of Johnson Associates, said in a statement. "And unlike the most recent years of higher payouts, this year's incentive awards are up across all sectors on Wall Street."
The average average managing director at an investment bank should earn about $1.5 million in incentives this year, compared with $1.2 million last year, said Mr. Johnson.
Meanwhile, the top five Wall Street firms-Goldman Sachs Group Inc., Morgan Stanley, Merrill Lynch & Co., Lehman Brothers Holdings Inc. and Bear Stearns Cos.- are set to give their 173,000 employees $36 billion by the end of the year, marking a 30% increase over last year's bonuses, according to Bloomberg. |
