Wall Street is highly profitable again, but cost-cutting and regulatory pressures should keep compensation totals from increasing at near the same rate. We talked to Alan Johnson, founder of compensation-consulting firm Johnson Associates Inc., to discuss the presumed winners and losers of 2013 and the potential impact of EU bonus on both sides of the pond.
What do you expect from Wall Street bonuses this year?
I think certainly all indications are this is a positive year. Wall Street bonuses will likely be up 5-10% on the year, with the news being more positive for U.S. bankers due to geography and their recent wins. It’s an unusual year though, as everyone seems to be headed in same direction. Asset managers, banks, insurance companies – they’ll all see around the same rise.
Any occupations that you expect to be better compensated than others?
I think some of the trading businesses in equities and fixed income will see a nice rise in bonuses. Investment bankers will do worse due to volumes not fully coming back.
eFinancialCareers / September 11, 2013