Candidates Question Hedge Funds on Hybrid Work, Culture, Burnout

Despite market volatility this month, the industry has a strong tailwind at its back, said Alan Johnson, managing director at compensation consultancy Johnson Associates. But concerns around office location and work approaches, something people wouldn’t have talked about a few years ago, have become a much bigger issue, he added.

“The whole location and how often you have to come into the office is something that wouldn’t have happened three years ago and now it’s part of every conversation,” he said…

Amid the competitive environment, firms are now talking about employees’ mental health and the resources they have available, Johnson added.

“They’ve tried to make sure people know there are confidential resources if they are struggling,” he said, adding that “after two years people are really tired.”

FundFire / January 26, 2022

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On Wall Street, Bonuses Are Up but the Mood Is Not

“It’s wild how hot the labor market is,” said Alan Johnson, a consultant who helps financial firms design their pay programs. “You’ve got crypto, you’ve got tech,” he said, plus the ever-present “siren song of private equity,” which pays far more than banks do…

The payouts come after a go-go year that generated record revenue for banks but widespread burnout among their workers. Mr. Johnson said he counseled his clients not to expect outpourings of gratitude.

“No matter how much you pay them, people believe that with all the stress they’ve gone through, they deserved more,” he said.

The Wall Street Journal / January 20, 2022

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Top Wall Street Banks Paid Out $142bn in Pay and Benefits Last Year

“The reaction [from bankers] usually would be very positive after this kind of pay year — we’ve told our clients to expect so-so to OK,” said Alan Johnson, managing director of Johnson Associates, a pay consultancy in New York. “The view is, I got paid a ton of money for ’21 but, boy, I earned it and I’m exhausted.”

Financial Times / January 20, 2022

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Managers Cautiously Optimistic About 2022

Money managers of all sizes are nervous about what industry pundits say is the industry’s hottest-ever talent war.

“Money managers are very optimistic about 2022, but also are very concerned about retention and recruitment because the hiring environment is so competitive right now,” said Alan Johnson, managing partner at Johnson Associates Inc., New York, a compensation advisory firm.

“2021 was a remarkably good year and bonuses will be higher. There may be a wave of departures after 2021 bonuses are awarded in January and February,” he added.

The firm estimates that 2021 bonuses will average 15% higher than in the prior year and Mr. Johnson said managers have revised their pay scales upward to win over candidates.

Pensions & Investments / January 10, 2022

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Wall Street Bankers and Traders are in Line for the Biggest Bonus Increases Since the Great Recession

Wall Street is set to see the biggest bonus increases since the Great Recession after a busy and profitable 2021, according to a report from pay consultancy Johnson Associates.

Booming deal activity, a hot IPO market and climbing equities mean bankers and traders are in line for outsized performance-based compensation, the report released Tuesday said…

Firms are “very concerned about turnover, even though pay is going to be up significantly,” Johnson Associates managing director Alan Johnson told CNBC.

CNBC / November 16, 2021

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Bankers Expect to See a Bump in their Bonuses

“There is a staffing shortage, so in addition to the pay levels, there’s a real demand for talent,” Alan Johnson, the managing director of Johnson Associates, said in an interview. “Every client we talk to is having difficulty getting recruits.”

“When you have a crisis, you usually have a lull in turnover, people get risk averse, hold onto their jobs, hunker down,” Mr. Johnson said. “But as we go to the middle of ’21 and ’22, there’s going to be more turnover.”

The New York Times / November 16, 2021

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