Press
Frozen Wells Fargo Bonuses Show a Peril for Bankers After Crisis
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…
Read MoreDespite Strong Year, Bonus Hike Not in the Cards
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…
Read MoreWith Record Profits on Wall Street, Small Bonuses Will Annoy Bankers: Experts
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,”…
Read MoreFirms See Technology as Savior to Cut Costs, Offer Competitive Edge
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.,…
Read MoreChoppy Markets Leave U.S. Bank Bonus Decisions in Limbo
“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…
Read MoreWall Street Bonuses Set to Drop as Banks Focus on Cutting Costs
“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…
Read MoreBonuses for Money Manager Execs Could Drop by 5%
Executives at traditional asset management firms can expect to see their 2019 year-end bonuses either remain flat or decline by 5% from the previous year, according to a report from compensation consultant Johnson Associates. Johnson Associates’ third-quarter report added that professionals within the hedge fund and private equity industries, meanwhile, are projected to see an…
Read MoreMost Wall Street Workers to Get Slightly Smaller Bonuses in 2019: Study
“All signs are pointing to an overall disappointing and lackluster year on Wall Street,” said Alan Johnson, managing director of the firm that did the report… Payments are pressured by a number of factors, including increased competition among investment banks, declines in equity trading and underwriting activity this year, and overall higher expenses, in part…
Read MoreThe Paycheck Prognosis
It used to be a straight shot from what the markets did to Wall Street and asset management paychecks. This is the first year those two have diverged significantly, according to Johnson Associates’ yearly analysis of incentive compensation… “If you look from January 1st, the markets look terrific,” said Alan Johnson, the founder and managing…
Read MoreMcDonald’s CEO Ouster Puts Pay, Severance Policies in Spotlight
Alan Johnson, managing director of New York-based Johnson Associates, said pursuing clawbacks—which he dubbed the “nuclear weapon” of pay disputes—requires careful consideration. “If you get into these personal, behavioral issues it just gets really tricky,” Johnson said. While embarrassing episodes such as an extramarital affair, DUI, or personal bankruptcy might raise red flags, Johnson said…
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