bonus watch

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 »

  • 09 Nov 2012 at 6:19 PM

Bonus Watch ’12: Ex-Citigroup CEOs

Just because they unceremoniously threw him out on his ass doesn’t mean the board wants to see Vikram go home empty handed. 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]

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 »

  • 30 Aug 2012 at 4:12 PM

Bonus Watch ’13: LightSquared

Harbinger Capital-backed LightSquared is a wireless venture that seeks to create “convenient connectivity for all.” Unfortunately, as the Wilbur Falcone fans among us know, it’s looking like it’ll be a dark day in hell before that happens, on account of bunch of forces working together to shut this thing down at every turn, including but not limited to the yachting community that claims GSP interference caused by LS will result in boats getting lost at sea; the National Oceanic Atmospheric Administration, which has said LightSquared “may degrade precision services that track hurricanes, guide farmers and help build flood defenses”; and the FAA, which recently put out a study estimating LS could “cost 794 lives in aviation accidents over 10 years with disruptions to satellite-aided navigation.” Also not helping is the fact that LightSquared filed for bankruptcy in May, the company is blowing through cash faster than Wilbur’s Studio 54 days, and senior executives won’t stop quitting. While some people might take stock of the situation and decide, at this point, to throw in the towel, Wilbur Falcone’s benefactor is not some people. He’s making this thing work if it’s the last thing he does. So, what now? Obviously a couple of miracle workers are going to be needed and the thing about miracle workers is that they don’t come cheap. Gotta spend money to make money. Read more »

  • 20 Aug 2012 at 3:46 PM

Bonus Watch ’12: Moelis

First year numbers. Read more »