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Many bonuses on Wall Street are expected to take a hit this year



But according to the latest analysis by Johnson Associates, a Wall Street compensation consulting firm, many financial services practitioners may be paid less than in 2019.

Alan Johnson, managing director of the Johnson Association, said: “This year’s epidemic has caused severe damage to many parts of the US economy, and the financial services industry is no exception.” “Although many industries have rebounded, they are traditional and alternative Most professionals in asset companies and retail and commercial bankers will receive smaller bonuses.”

According to data from the New York City Audit Office, as a starting point for comparison, the average bonus paid to people in the securities industry last year exceeded $1

64,000.

How Wall Street professionals’ bonus checks are compared year-to-year depends on the service they provide.

Johnson Associates pointed out that major investment banks and commercial banks have shown “strong investment banking performance,” but their commercial and retail banking operations are weak, which will reduce bonuses. Although asset management, hedge funds and private equity have seen a “sharp recovery”, incentives are still expected to decline moderately.

Johnson Associates estimates that retail and commercial banking have experienced the greatest decline. Their expenditure may be reduced by 25% to 30%.

The share price of investment bankers may fall by 15% to 20%, while the share prices of financial services management and employees may fall by 10% to 15%.

The bonuses for people working in private equity and hedge funds are expected to fall by 5% to 10%.

However, there are several groups that will reverse the downward trend, mainly due to the continued uncertainty in 2020 and the high volatility that has often led to record trading this year.

Bonuses for fixed income sales and trading professionals may jump 40% to 45%, while bonuses for stock sales and trading professionals may jump 20% to 25%.

Johnson Partners reported that at the same time, investment banking underwriters have increased by 35% to 40%.


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