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Equities Traders, Underwriters on Track for Biggest Bonus Bumps
Incentive compensation for equities traders may climb as much as 30% while underwriters could see a 40% jump, Johnson said Thursday. Stock underwriters — who worked on a record number of special-purpose acquisition companies in the first three months of the year — are “significantly outperforming” their counterparts in debt capital markets, the consultancy said.…
Read MoreCEOs are Getting Paid Bonuses Like There Was No Pandemic
Compensation consultants have long argued that owning stock best aligns the interests of the CEO with those of the company’s shareholders, who are the ultimate owners of the company. Yet companies also note that that sticking to pre-set financial goals during economic downturns may not reward corporate leaders for any critical decisions they make that…
Read MoreCHROs Flag Burnout, Excessive Stress in Board Reports
“I think generally people think 2021 will be a better year financially and hopefully the workforce will get back. As we tell clients, I think pay is really important, but I think at the moment, the fatigue and stress of the employee workforce is at least as important,” says Alan Johnson, managing partner at Johnson…
Read MoreEli Lilly Doesn’t Plan to Claw Back Past Pay From Former CFO
Growing societal awareness around inappropriate behavior in recent years, accelerated by the #MeToo movement, is forcing companies to be more transparent in cases of executive misconduct, said Alan Johnson, managing director at Johnson Associates Inc., a compensation consulting firm. “Historically, companies either did nothing or allowed people to leave quietly,” Mr. Johnson said. “That appears…
Read MoreClawbacks Are Hard, So Companies Try Postponing Pay Instead
Critics warn that deferring more pay, with risk of forfeiture, could discourage executives from reporting misconduct and make it too easy for companies to rescind pay. “If we make these penalties even more severe, are more people going to come forward or fewer?” said Alan Johnson, managing director of Johnson Associates, a financial-services industry pay-consulting…
Read MoreEmployees Watching Exec Pay, Consultants Say
“This is not a year for a lot of gobbledygook and lawyer-talk,” says Alan Johnson, managing partner at Johnson Associates, a compensation consulting firm that mainly works with financial services companies. “This would be a year for straightforwardness. They may disagree [about compensation decisions], but they won’t think you were hiding something or weren’t straightforward…
Read MoreJunior Bankers Feel Left Behind in COVID-era Banking Boom
“The fear that clients have is that they may be more susceptible to leaving now simply because they don’t have the cultural norms, they don’t have the personal loyalty or allegiances to people,” said Alan Johnson, head of compensation consulting firm Johnson Associates Inc. Wall Street banks were already struggling to attract and retain young…
Read MoreFor Bankers, 2020 Was a Bad Year to Have a Good Year
Wall Street banks have had a decent crisis so far. That is unlikely to translate to bumper bonus payments for bankers and traders, as chief executives and boards grapple with the optics of big payouts amid economic hardship on Main Street… According to New York-based compensation consulting firm Johnson Associates, banking industry bonuses are likely…
Read MoreWall Street Bonuses Likely to be Smaller This Year: Johnson Associates Analysis
“The pandemic is wreaking havoc on many parts of the U.S. economy this year, and the financial services industry is no exception,” said Alan Johnson, managing director of Johnson Associates… Even with an optimistic vaccine view, the pandemic will continue to weigh on the economy in 2021, but likely to a lesser degree than in…
Read MoreCOVID-driven Divide Emerges on Wall Street as Bonus Season Looms
“The majority of professionals at traditional and alternative asset firms as well as retail and commercial bankers will see smaller bonuses,” said the firm’s managing director, Alan Johnson. “Conversely, fixed income pros will be rewarded handsomely as uncertainty and high volatility contributed to record trading.” Hedge funders will have a check about 5 percent to…
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