Credit Crunch Bonus Watch: Bear Stearns Compensation Declines

Posted by , Dec 12, 2007 5:21PM

15% down...sold to you! Try 50% down... and i wouldn't be surprised if a number of people turn up to their numbers discussion and are asked to write a check... the bear stearns

Posted by , Dec 12, 2007 5:25PM

15% down in this environment seems like a sweet deal to me, especially for BS which has been hit hard. We'll see.

Posted by QuantStar, Dec 12, 2007 5:56PM

BS Bonuses will be distributed in dime bags from Jimmy the Joint's private stash.

Posted by 2girls1prick, Dec 12, 2007 5:57PM

My friend at Bear Stearns told me that her bonus is some 35% less than it was last year. Where did you guys get your numbers?

Posted by just askin..., Dec 12, 2007 6:01PM

should ken lewis be fired? first he takes a $1.4 bn charge in Q3 and fires 3,000 people, now he's at the GS confernce saying he's going to take another biggie. turn about, after all, is fair play. as for the bonuses - or lack thereof - I'd say 15% - 20% down would be a blessing. word on the street is that they are planning another round of lay-offs. dust off those resumes.

Posted by , Dec 12, 2007 7:00PM

@6:01 more layoffs to come from BofA confirmed. Much bigger than the 3k in October...

How can Ken L not be under any pressure? They're almost as big as Citi (not as prestigious by any means)! Seems like their CDO group and other structured product guys have found something they're good at...losing more money! Not sure how this is possible.

Posted by Anonymous, Dec 12, 2007 7:54PM

Doesn't know where you're getting that information, but those figures are definitely incorrect. Most areas of Bear don't even hear until next week, but there's not much doubt that it will be much worse than 12%-16% (at least on the trading side).

Posted by gasparino, Dec 12, 2007 8:03PM

Copy that 7:00 PM. My head sales guys I know at BofA already has put in names to HR for cuts to come in early 08. They're having an ugly 4Q over there. Expect their capital markets business to be completely gutted. Not sure about IBK, but they can't be doing much better.

Posted by , Dec 12, 2007 8:16PM

It's good to be in Private Equity and not one of those garbage truck banks.

Posted by A.L., Dec 13, 2007 3:08AM

Fyi, BofA is much bigger than Citi. Citi's market cap is almost on par w/ JPM's.

and their SF desk is now running the M-LEC. that's more than GS can say.

Posted by buyer's remorse, Dec 13, 2007 4:29AM

was it a mistake to go to law school? i seem to be working banker hours, if not worse (waiting for a car right now), and after three years in grad school and one year working my pay is only around $200K/year (including bonus). even with your reduced bonuses, aren't you still beating me after your third or fourth year on the job (and sometimes before that)?

i'm really starting to regret spending three years and $100K on law school. i've thought about making the switch before but i'm in litigation so it's significantly harder than it is for the corporate lawyers.

Posted by Katie Hayder, Dec 13, 2007 6:51AM

I am a 1st year analyst working for a Hedge fund in SF. I was told that my bonus will only be $55,000 in 2007. I understand it's my first year after college, but our fund has been performing well. I would love to hear about other 1st year bonuses. Thanks.

Posted by , Dec 13, 2007 8:41AM

6:01, please, getting rid of ken is about as likely as bonuses being up at bear. he's announcing the monthly marks to market, its not like they found new exposure they didnt know about a-la citi

Posted by , Dec 13, 2007 9:45AM

@4:29 What you say is true about salary after 3/4 years. My view however is that its a little easier at a law firm to survive and reach that point. Its basically about brains and discipline (which you probably have, since you're there in the first place). At a bank more soft skills come into play and you're a little more at the mercy of client whims, your ability to charm, etc. So on a risk adjusted basis the outcomes are not that different.

At the same time, lawyers can make fine bankers and many have made the switch. If you're around enough bankers you probably have a sense if that's a better path for you. (Hey, I could do that!!!) All the best.

Posted by 3rd yr analyst, Dec 13, 2007 10:42AM

katie hayder is 55k for the half year youve worked since you graduated in may? if not, then 55k sucks. first year analysts in banking last year got 60k base + ~90k bonus (paid in july).

Posted by , Dec 13, 2007 11:18AM

@10:42 Once you get beyond the big banks jobs are not that uniform, so I think you shouldnt be generalizing like that. The woman may not have such complicated responsibilities.

Posted by Katie Hayder, Dec 13, 2007 11:38AM

I knew my fund ripped me off. I have been working the whole year and only got 55K. however mybase was $70K. I am so pissed.

Posted by J-Ha, Dec 13, 2007 11:45AM

to katie - you are 22 or 23 years old and made $125K in a tough market. i am sure you don't even add that much value or alpha (no offense - you are just really young and starting out) you should be singing your lucky praises right now.

Posted by Noonan, Dec 13, 2007 11:48AM

Katie, sweetheart, you are 22ish and made $125k? Things could be a lot worse.

How do you know you were ripped off? What do you feel you are entitled to?

Posted by , Dec 13, 2007 11:50AM

Katie - Feel free to negotiate with your employer. Nobody's going to just hand you more money if you don't ask for it. But you better know whether you're worth it and be able to back it up.

Posted by Katie Hayder, Dec 13, 2007 12:02PM

I am totally greatful for what I made this year. It was a tough year and believe that I actually brough value to the company. I just want to make sure thru this post how much 1st year are making in this difficult market, so when it comes the time to negociate my bonus/salary. I have a general idea about the going rates.

Posted by Daphna, Dec 13, 2007 12:03PM

Katie - What school did you go to if you don't mind my asking?

Posted by , Dec 13, 2007 12:05PM

Katie sounds a little bogus to me. Kind of naive for someone working at a hedge fund and pulling in $125 first year. Or maybe its a cultural thing - like she's Asian.

Posted by Katie Hayder, Dec 13, 2007 12:08PM

UC Berkeley...Does my name sounds Asians..idiot

Posted by O RLY?, Dec 13, 2007 12:13PM

Katie - maybe your dad got in early on the WGWAG trend before sadly meeting his untimely demise rushing after a trolley? We're not here to judge.

Posted by , Dec 13, 2007 12:22PM

Chill girl. Who would imagine that someone would post their real name here. Plus your sentences are Asian-like (..want to make sure thru this post how much first year are making...)

Posted by Ben W., Dec 13, 2007 12:24PM

Hey, what bonus do the shareholders get? How about the giant rod w/no vaseline? Why do inv. banks even have such a large staff of non-producing assets? The axe should continue to fall on these "MBA" who contribute ZERO to the firms they represent. But I guess we OWE you a bonus, right????

Posted by 3rd yr analyst, Dec 13, 2007 12:26PM

everyone stop being playerhayder's. girl deserves to get paid what everyone else is....katie, id bring it up in your year-end review. but, keep in mind that all of the bankers will be killing themselves to get to a hedge fund once they get their bonuses. you might already be a step ahead....

Posted by 3rd yr analyst, Dec 13, 2007 12:28PM

everyone stop being playerhayder's. girl deserves to get paid what everyone else is....katie, id bring it up in your year-end review. but, keep in mind that all of the bankers will be killing themselves to get to a hedge fund once they get their bonuses. you might already be a step ahead....

Posted by , Dec 13, 2007 3:02PM

Katie, what do you look like?

Posted by grown up, Dec 13, 2007 3:25PM

I think 125 grand for a year in which thousands of people in the industry got laid off is pretty good for a twenty-two year old. Twenty-two year old med, law, and grad students are studying and taking on debt. Their ability to produce income is years away. The median income in this country (for all ages) is 50 grand. By most measures, Katie is way out in front.

But what do all these e mails mean about being Asian? Asians should expect to earn less? And who is being lumped together in the category of Asians?

Posted by lalaland, Dec 13, 2007 6:11PM

are you kidding me? either Katie is the deranged one ONLY earning $125 at the age of 22 or I am. Come on-how talented do you really think you are? How much did you really contribute? What do you want Katie $750k at your age? What you planning retiring at 30? If you're that smart I'm sure you'll be married long before that...

Posted by , Dec 13, 2007 6:25PM

I started the Asian thing. The implication was not that Asians should earn less. It was my observation that Katie was acting kind of goofy and blunt and immature, based on her line of questioning. So I said that was either weird or Asian. (Ever see Margaret Cho immitate her mother meeting her first boyfriend: Why you eyes so BIG???)

Posted by SlashAndBurn, Dec 14, 2007 3:01AM

By Katie using her real name while posting her salary, and complaining about her employer, she has illustrated how she's -- easily -- about $100K overcompensated...

Don't spend that bonus all in one place.

Posted by 10b5, Dec 14, 2007 4:03AM

it's obviously *not* her real name. she's trying to be funny. katie hayder = katie "hater," get it?

i was unaware that "goofy and blunt and immature" were qualities often ascribed to asians. to the contrary, i thought the stereotype was that of the "inscrutable oriental."

margaret cho is not exactly typical of asians, btw. she's about as whitewashed as you can get. if anything, then, margaret cho's immaturity says more about the white culture she's adopted than the asian culture she came from.

as for the BofA layoffs, i'm not normally given to schaddenfreude but in this case i'll make an exception. to be honest, i'm thrilled -- robb f. (who incidentally is a big fan of the asian girls) i certainly hope HR has a pink slip with your number on it.