The good old days are back, at least for traders at investment banks. Little more than a year after the credit/economic crisis that was supposed to have changed Wall Street forever, I-bankers are set to be rolling in dough come bonus season, if their firms are lucky enough to have paid back Uncle Sam for his help in, you know, surviving.
And in a major reversal from just a few years ago, alternative investment pros will be worse off, not only than their I-banking peers, but even compared to their own sorry bonuses from last year, despite the big returns many hedge funds and private equity firms have enjoyed in 2009.
The Johnson Associates survey predicts that investment bankers will, on average, get a 40% fatter bonus check this year. But before you M&A guys start pricing Maseratis, the news on the Street is not all good. Those bigger bonuses will be going almost exclusively to traders, with bond traders getting between 50% and 60% more than last year, and equity traders getting between 40% and 50% more. Indeed, if the words “fixed-income” or “equity” is not in your title somewhere, you’re probably going to have to make do with less than last year.
Commercial bankers? Expect between 5% and 10% less. M&A advisers? 10% to 15% less. Asset managers, hedge fund guys and buyout kingpins? Cancel Christmas.
You see, all of that stellar performance this year, which may or may not have made up for those catastrophic losses last year Ken Griffin, apparently hasn’t fooled enough investors to give hedge and p.e. funds their money back. And until they do, it seems that those who two years ago were preparing to inherit the earth will just have to watch those I-banking dinosaurs have all the fun.
Asset managers and alternative investors–and the poor prime brokerage folks who serve them–won’t be the only ones bemoaning a lost world. Citigroup and all those other firms still in the government’s debt will remain subject to the always watchful eye of bonus Grinch Ken Feinberg. But even that’s preferable to the ultimate indignity of being French.
Offering up another piece of evidence that “right-wing” doesn’t actually have any meaning at all in Europe, France’s rightist government plans a draconian crack-down on bankers’ pay. The French plan all sorts of unpleasant new rules for their banks, covering both their domestic operations and BNP Paribas’ soon-to-be-deserted New York office. Among them are–gasp–an outright ban on multi-year guaranteed bonuses and greater disclosure, for shaming purposes.
Big Bonuses Are Back for Many on Street [WSJ]
France Sets New Bonus Rules for Banks [WSJ]
what about ‘fixed-income’, but at UBS?
Greg
Over the next few years I’m going to write a series of increasingly strident, long letters to various regulatory agencies and advisory bodies accusing you of trading on inside information, helping clients dodge taxes, running a massive Ponzi scheme and taking kickbacks on municipal bond issuess. My letters will almost certainly be ignored. At worst, my accusations will be swiftly disproved after only a cursory examination of your finances.
Not Jeff Macke but a fan of his work
Bonuses at Citigroup will be as follows:
Tier 1: A pair of tickets to the Mets opener next year.
Tier 2: Steak knives
Tier 3: A free pass to take a dump on the floor of your respective trading floor restroom.
Not a hater but you just regurgitated whatever was in the WSJ article, added a couple of Kens and threw in France.
What gives, Shazar? What’s your value add?
Bess can survey my best friend Johnson and his two associates any time she wishes.
Never seen Greg and Jon Shazar in the same room.
SHAAAAAZZZZZZANUS!
Only a 50% bonus?
- GS Trader
between smith barney and bnp, sounds like there’s gonna be alota empty office space at 787 7th available in the near future.
#8 = AIG Quant in disguise.
“Fixed Income at UBS” is an oxymoron. Just like “Bonus at UBS”.
-soon to be ex-UBS
@11 – There’s a rumor that UBS sucks. Can you confirm?
Hedge funds are getting killed on comp this year. 40% less than 2008
M&A guys are such losers. No money, but tons of work. Anyone with half a brain would choose trading. Seriously, if you’re in M&A, shoot yourself today.
@14 – I am compelled by your life views, please opine on those in MMA. Thoughts?
@ 12, yes that is affirmative.
SHUT UP
shazumms, again with the wordy post. and yet, you failed to pick up on the line that could generate the most commentary:
“Our objective is to pay the minimum compensation consistent with competitiveness”
discuss…
I am in M&A. I am trading now. Crap, I just lost my ass. I am going back to buying companies, firing jag-off CEOs that hate us liberals and collecting a paycheck. Suck it Wall Street.
what about munis?
-sales whattup
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