Chairman Sir Philip Hampton went seriously off-message yesterday, accepting the somewhat tenuous proposition that the comically-large bonuses of days gone by might have had something to do with the recent recession. On the bright side: R.B.S. has slashed bonuses by 75%, so no one needs fear another economic crisis. Read more »
Exciting news for second year associates up through directors. Read more »
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.