“The virus is heading us toward a nasty recession,” said Alan Johnson, managing director of Johnson Associates in New York. His firm predicted banks, brokers and asset managers would slash bonuses this year, following a mixed performance in 2019, when private-equity firms held bonuses level or raised them as much as 5% over 2018. The…
Wall Street bonuses will fall roughly 30% this year, with even the most productive employees facing a pinch, as big banks and investment managers try to preserve profits during the coronavirus recession, a leading compensation expert said on Wednesday. The predictions by Alan Johnson are closely watched by financial professionals, especially during times of stress.…
A “perfect storm” is taking shape, with a global recession looming and broader industry shake-ups coming as well, the managing director of Johnson Associates Inc. said. “It looks like it’s going to be a very, very tough compensation year,” he said in an interview Wednesday. “This is a shock to the system that you see…
“We’re not having a flush year” as an industry, said Alan Johnson, managing director of Johnson Associates… When it comes to real estate, Johnson noted the 2017 federal tax overhaul’s impact. He said the capping of state and local tax deductions has made living and working in New York City more expensive for many companies…
The situation has swept up executives who haven’t been accused of any misconduct, according to the people, who asked not to be named discussing the confidential process. For denizens of the financial industry, it offers a cautionary tale about what can happen now that banks are diverting billions of dollars annually into stock awards to…
Managers are currently “loath to add in fixed costs, and I don’t see that changing,” said Alan Johnson, managing director of Johnson Associates Inc., New York. And given industry headwinds such as fee pressures, he doesn’t believe managers would try to make up for a dearth of big bonuses by increasing salaries or other entitlements…
Most Wall Street banks announced their fourth quarter profits beat industry expectations last week. But by the end of this week, bank sources and compensation experts told Reuters, most of their staff will be underwhelmed by their bonuses… “Markets can go up, earnings can go up, but that doesn’t mean pay has to go up,”…
As money managers continue to evolve to better integrate technology into their business, demand for professionals with this expertise also grows. And while firms are moving to lower-fee investment products and facing increased operational costs, the “best technologists and data analytics (professionals) continue to be expensive,” said Alan Johnson, managing director of Johnson Associates Inc.,…
“There may be people working New Year’s because they’ve got to finalize this January 10 or 15,” said compensation consultant Alan Johnson. “People are going to be particularly vigilant to make sure that they’re going to be paying the right amount, figuring it out right up to the end of the year.” At one bank…
“Pay is down in a healthy market—that just tells you how much competition there really is,” Alan Johnson, managing director of Johnson Associates, said in an interview. “We’re clearly in the new normal.” Banks have faced muted capital markets results in recent quarters amid uncertainty around geopolitics and interest rates. The industry’s healthy third quarter…