Based on first-quarter revenue and cost trends, incentive funding at major investment and commercial banks is expected to fall by 5% to 10% in 2022, with investment bank underwriting desks seeing declines of up to 40%, Johnson Associates has estimated. Lower revenues will be the main driver of direct decreases in incentive pay, but inflation…
“For the first time in decades, inflation has a significant impact on real compensation outcomes,” according to the report. The consumer price index rose 8.5% between March 2021 and 2022, and rising interest rates are putting the brakes on corporate deal making. The latest figures reported by Johnson represent a dimmer outlook for the year…
Last year was an unprecedented bonanza for Wall Street bankers — and it was fun while it lasted. Bonuses for bankers at big financial firms — which hit record highs in 2021 amid a rash of big deals and a dire talent shortage on Wall Street — are expected to drop as much as 40%…
Equity capital markets dealmakers are likely to see the biggest drop in bonuses this year, according to the latest survey by Johnson Associates, while most business lines are set to for a sharp decline compared to 2021, when deal fees surged to a record $130bn. Bankers working on M&A transactions could see drops of up…
Excluding the impact of inflation, bonuses paid to professionals in traditional asset management firms are projected to fall by 10% to 15% by year-end 2022 compared with the prior year-end, due to assets under management and revenues falling on “market decline and moderate outflows as clients de-risk,” the report said. For professionals at mega-size private…
At Mastercard, annual bonuses are based on several factors which make up a corporate score, a company representative told me. Up to 10% of the total corporate score represents how the company performed against ESG goals. Individual performance is the final component of the bonus calculation. This method is how executives were measured last year…
A tight labor market is pressuring asset managers to reshape their compensation and benefits packages as more professionals consider new job opportunities. And while firms typically use bonuses to sweeten offers, base salaries are getting more attention, according to compensation consultancy Johnson Associates. “Even [during] the financial crisis, we didn’t have as much focus on…
“I’ve had more discussions about this in the last three months than in 20 years,” says Alan Johnson, whose New York City consulting firm Johnson Associates advises major companies on pay… In the same way, high inflation may frighten retirees, or those planning to retire, whose nest eggs look alarmingly inadequate at 7.5% inflation versus…
Compensation Challenges During a Talent Struggle March 2022 READ PRESENTATION