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U.S. Regulators Propose to Restrict Wall Street Executive Pay
“Although the overall pay rule is tougher than previous versions, it is certainly still more benign relative to European rules,” said Alan Johnson, managing director of Johnson Associates Inc, a compensation consultant serving financial services firms, referring to the proposal. He said the four-year deferral period “is not overly restrictive.” But the clawback could prove…
Read MoreWall Street Executives Won’t Get Bonuses for Crashing the Financial System Anymore
If federal regulators influence clawback decisions, “there’s a high probability it will drive people out of the heavily regulated part of the financial-services industry,” said Alan Johnson, managing director of Johnson Associates Inc., a compensation consultancy that closely tracks Wall Street. To retain talent, banks and other affected institutions “will just have to pay more”…
Read MoreWall Street Wages Double in 25 Years as Everyone Else’s Languish
“Are people going to hold a charity benefit for Wall Street? That’s probably not going to happen — you’re not going to buy those raffle tickets,” said Alan Johnson, managing director of Johnson Associates, which designs executive-compensation programs for financial firms. “But business school graduates are not wanting to go into financial services. They’re wanting…
Read More10,000 Jobs Set to Disappear from Wall Street This Year
Renowned compensation consultant Alan Johnson – who works with most big Wall Street firms – believes that financial services organisations are going to base more roles outside of New York to cut costs. Across the whole country, there will be a reduction of 50k financial services jobs over the next 12 months, Johnson predicts, with…
Read MoreMorgan Stanley Struggles to Trim $5B Recruiting Loan Bulge
But the 10-digit figure shows how important big checks remain in recruiting retail brokers, despite the complaints of senior executives, said Alan Johnson, managing director of compensation consulting firm Johnson Associates. “[Our] clients have always said that we really don’t want to do this, and then they do it as much as ever,” Johnson said.…
Read MoreHow January’s Stock Rout Could Make Wall Street CEOs Even Richer
While the boards of big banks all set dollar-price targets for equity awards, some companies determine grants based on the number of shares. Alan Johnson, managing director of compensation consulting firm Johnson Associates, said he prefers a dollar target because setting a unit target could mean runaway compensation if a stock explodes in value. “It…
Read MoreBank-Stock Rout Ripples to Bonuses
The decrease is providing the first pocketbook test of the new bonus practices banks established in the wake of the 2008 financial crisis. “It’s a big deal,” said Alan Johnson, managing director of pay consultant Johnson Associates. “The business is down, the market is down, the stock is down. It couldn’t come at a worse…
Read MoreManager Recruiting Heating Up Despite Dip in Bonus Payouts
Mr. Johnson cited volatile markets, which pinched firms’ flows, as the primary reason bonuses were down at the end of 2015. Other factors include money management firms increasing their costs by adding people and opening offices around the world, he said. Still, Mr. Johnson said he doesn’t see this as something to be particularly concerned…
Read MoreWall Street Pay Takes a Hit, Braces for Deeper Cuts
Roughly translated, this means layoffs in costly cities like New York and London in favor of hiring in cities like Mumbai, said Alan Johnson, a compensation consultant for Wall Street brokerages. “Downsizing and relocation, you’re going to see both.” The pay cuts come as Wall Street struggles with falling demand for trading and underwriting. They are also a reflection of Wall Street’s…
Read MoreWhy Yahoo’s Slump Isn’t Erasing Marissa Mayer’s Stock Options
Instead, Mayer’s 2014 options were granted on Feb. 27 with a strike price of $18.87, even as the stock closed at $38.47 that day. As at many companies, the number of options she ultimately collected hinged on performance targets. Thanks to the way hers are dated, those instruments would have generated $14 million if exercised…
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