bonus watch

And here’s what he’s doing about it! Read more »

Back in the day, as in pre-crisis, bonus season on Wall Street was a happy time. Sure, you still had your miserable pricks who would bitch and moan about the fact that they hadn’t gotten as much as the guy who sat next to them, even they the guy who sat next to them was a “non-contributing zero who wouldn’t recognize alpha if it bit him in the ass,” but prior to to fall 2008, anyone who was unhappy about his or her bonus was a) quibbling over receiving a huge sum of money instead of an imperial fuck-ton of money and b) in a position to actually make good on a threat to jump ship, since firms were hiring. Now, with a few exceptions, bonus season makes people feel sad. Angry. Powerless. Frustrated. Confused. Like the world is out to get them. Not only has the total amount of one’s bonus come down, but many companies have decreased the cash portion, while increasing the deferral period on stock to, in some cases, almost half a decade. Then you have Jefferies. Last year it let employees decide between an all stock bonus or an all cash bonus with 25% lopped off.  This year the investment bank-cum-butcher shop isn’t even forcing anyone to choose, instead dumping a bag of cash on people’s desk and reminding everyone who loves ‘em. Read more »

If you’re looking for a cheerleader, go bark up another tree.

“Say you want to be out ahead of it and give a lot of speeches and talk about all the good we’re doing,” Gorman said today at an industry conference in New York. “And then some trader does some stupid thing like this guy at UBS did and he’s in jail and all bets are off,” Gorman said. He was referring to Kweku Adoboli, the UBS AG trader convicted of fraud this month in the largest unauthorized trading loss in British history…Traders at New York-based Morgan Stanley had too much latitude in the past, “what I call having an outsized sandbox,” Gorman, 54, said at the conference, which was sponsored by the Securities Industry and Financial Markets Association. “Until we can be really confident we’ve got discipline around the sandboxes, I think you have to be really careful not to be holier than thou,” Gorman said. “We’re going to be in the doghouse for a while.”

Incidentally, this would a good time to mention that Gorman’s bonus policy instituted last January– STFU or GTFO– still stands. Read more »

Santa will leave many bankers and traders empty-handed this holiday season. One in five Wall Streeters won’t get a bonus for 2012, according to a closely watched compensation study set to be released next week. That figure is up sharply from last year, when roughly 13% of bonus-eligible employees got no added year-end pay, according to Options Group, a New York executive search and consulting firm that produced the study. In terms of overall compensation, some staff in stocks and derivatives trading are likely to be the hardest hit, as their compensation is set to shrink by at least 20% for the third year in a row, the study found. A stock trader who is a managing director at a securities firm stands to take home as little as $550,000, down 31% from 2011. Sluggish deal activity means investment bankers also could receive a 13% pay cut, the study found. [WSJ]

  • 17 Oct 2012 at 2:24 PM

Bonus Watch ’12: Retired Citigroup CEOs

Uncle Vik may or may not be receiving a little something extra for his trouble, depending on how generous Citi is feeling. Read more »

Now that we’re nearly halfway through October, several items on your to-do list will have undoubtedly been upgraded in urgency: scouring Starbucks near and far for for Pumpkin Spice lattes before it’s too late, and being dead serious in telling the baristas at the various locations claiming unavailability that they’ve ruined your life; coming up with a Halloween costume that’s at once slutty and topical; and discussing bonus expectations. Despite the fact that bank CEOs and people who speak on their behalf have suggested (by saying outright) that pay will come down this year, and that anyone who still has a job in 3-4 months should consider that their bonus, some on Wall Street are apparently predicting they’ll do pretty well for themselves this year and very well circa 2015. Read more »