Big banks are expected to use a larger portion of profits for employee bonuses this year, despite extensive job cuts and a recent outcry from shareholders over excessive pay, according to a closely watched survey of Wall Street compensation…
Johnson Associates said 2012 bonuses are expected to be constrained for top executives whose compensation packages are detailed in proxy filings due to “public optics” and regulatory pressures. In recent years, banks have introduced clawback provisions, more stock awards and deferred pay to align employees’ risk taking with companies’ long-term welfare.
Johnson Associates projects that employees in fixed-income trading businesses are likely to see the biggest bonus increases, in a range of 15 to 25 percent, thanks to improvements in bond markets. Employees who work in interest-rate products are likely to see the biggest bonus gains, according to the report.
Reuters / May 16, 2012