Johnson Associates in the news
Boards have oversight of retirement plans, but not at a deep level. They generally leave it to management, says Alan Johnson, managing director of compensation consulting firm Johnson Associates. That may be one reason why participation is low at many companies. “I think most companies have looked at 401(k)s as kind of a hygiene factor. You’ve got to have one and it needs to be reasonably competitive,” Johnson adds. “but if you’re well beyond the (minimum), it may not be a good use of (corporate) money.”
“Getting zero bonuses was unheard of a couple years ago, but it happens today,” said Alan Johnson, head of compensation consulting firm Johnson Associates.
“I expect that there are people who will get no bonus” this season, he added.
But compensation experts say the change in tax law is not likely to reverse years of upward pressure on executive pay. If anything, companies are likely to make such pay less dependent on performance-based bonuses and give executives a higher salary, they say.
“Some people will hope this reduces executive pay; I don’t think it will,” said Alan Johnson, managing director of pay consultant Johnson Associates.
“The impact of getting rid of the deduction of state and local taxes is a tipping point for New York, Boston and California as people look at where to create jobs and put people,” Johnson says. “The exodus of people [from expensive cities in states with high taxes] will accelerate, and that’s going to have a big impact on financial services.”
Alan Johnson, the founder of compensation consulting firm Johnson Associates, says that pay is typically 15%-20% less in locations outside of New York where banks are moving jobs. However, the lower cost of living often makes up the difference.
Crain’s New York Business
“A strong stock market and a favorable political and regulatory environment are contributing to one of Wall Street’s healthiest years recently,” said Alan Johnson, managing director at Johnson Associates.
Pensions & Investments
Alan Johnson, managing director of Johnson Associates, attributed the rise in expected bonuses to “a strong stock market and a favorable political and regulatory environment” in a news release announcing the firm’s estimates.
“A strong stock market and a favorable political and regulatory environment are contributing to one of Wall Street’s healthiest years,” Alan Johnson, managing director of Johnson Associates, said in a statement. “As a result, incentives will be up noticeably, especially in asset management and investment banking.”
Wall Street Journal
For the first time in four years, year-end bonuses for bankers in 2017 are set to grow over the prior year, according to consulting firm Johnson Associates Inc. Over all, incentive pay is expected to rise by 5% to 10%, Johnson’s survey found.
Alan Johnson, who runs Johnson Associates and helps banks design compensation programs, said that Washington’s shift toward a softer tone on banks is a big factor in their improving stock prices, which is in turn a big driver of bonuses.
Pensions & Investments
And one compensation consultant doesn’t believe the new law will help achieve its intended goal. Mr. Johnson remains unconvinced that the New York law will have the desired impact on the money management industry, but instead will drag out an already belabored recruiting process.
“I don’t think it’s going to narrow the gap. But politicians want to believe compensation (in the money management industry) is driven by discrimination and not the market,” said Mr. Johnson. “I don’t think it’s going to have a positive impact.”
Mr. Johnson added he believes the law will simply “make the recruiting process more cumbersome (and) more drawn out.”