…there is a peculiar dynamic, where pay can fall even when the economy is strong, said Alan Johnson… “This is some kind of an inflection point,” he said. “It used to be, ‘As long as AUM is up and as long as the market is up, you’ll be fine.’ But that’s no longer true.” Although…
Compensation for many employees of big banks and asset managers is expected to stay flat or drop this year… Equities trading and underwriting will probably be hardest hit, according to a new report by the compensation consultancy Johnson Associates. Their annual pay packages could fall by as much as 15 percent from last year. The…
Traders and investment bankers “haven’t had the revenues that I think they were expecting,” Alan Johnson, managing director of Johnson Associates, said in an interview. “Clients haven’t come back, the volumes haven’t come back.” “The economy is clearly slowing, so how fast is that going to happen I think is the big variable,” Johnson said.…
Asset gains will not push incentive compensation up due to the shift in assets to lower-fee products and the rebalance out of equities into fixed income strategies, the compensation consulting firm states in its second-quarter trends and year-end projections report released today. Revenues have replaced market gains and assets under management as predictors of incentive…