Nearly half of Wall Streeters to get bigger bonuses

Nearly every Wall Street worker is getting a bonus this year — despite public outrage over banker compensation.
FEB 23, 2010
Nearly every Wall Street worker is getting a bonus this year — despite public outrage over banker compensation. A new study conducted by eFinancialCareers Ltd. showed that 92% of Wall Street workers have been told by their firms that they will get a bonus in the coming weeks for their performance last year. This compares with 79% who got bonuses last year for their work in 2008. Of the 92% who are getting bonuses this year, 69% are getting at least the same amount they got last year. In fact, nearly half — 46% to be exact — will pull in a fatter bonus than they received in 2008. Less than a third of the Wall Street workers will be getting smaller bonuses this year than last. For their big cheeses, employers seem to be supersizing bonuses this year. Workers in line for larger bonuses will be receiving, on average, double what they got in 2008. The highest bonuses are going to employees at investment banks, private-equity firms, hedge funds and those working in trading and fixed-income markets. Wall Streeters working in wealth management, retail banking, real estate and investment marketing will get smaller bonuses. “This is a very flexible performance-related pay structure,” said John Benson, chief executive of eFinancialCareers. “I think you're seeing people who are clearly being rewarded for work well done, and firms can trim compensation levels if an individual has done less well.” Mr. Benson said that the public often thinks of bonuses as a “four-letter word,” but he added that the bonuses are based on performance. “I think the word "bonus' is often taken by many people on Main Street to mean something that's unexpected,” he said. “What we're talking about here is performance-related pay.” Survey participants weren't asked to disclose the exact breakdown of their bonuses. But 39% of financial services professionals indicated that getting a bonus that is more heavily weighted in stock wouldn't influence them to leave their current position. E-mail Lisa Shidler at [email protected].

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