eFinancialCareers reports that half the bankers and finance professionals it surveyed expect bonuses this year will be the same or less than they got last year.
Of course that means that half of Wall Street is expecting a bigger year-end bonus; better than 70 percent bigger, say 7 percent.
Market conditions, the Dodd-Frank financial industry regulation overhaul, and restraint by the firms themselves, were cited by the survey respondents as responsible for limiting bonuses. The Dow Jones Industrial Average has been up and down, though it has been climbing steadily since late September. And after the public reaction to the bonus disclosure of the last couple years, it’s not a surprise that firms are tightening up.
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Those most optimistic about their bonuses are younger Street workers. Of those with 15 or more years experience, 38 percent are bracing for no or lower bonuses this year.
In reporting the results of the global survey, eFinancialCareers says compensation is a particular challenge for Wall Street firms. “It’s never an easy balance when retention continues to be an issue,” says Constance Melrose, eFinancialCareers North America managing director. “In fact, nine percent of those expecting fatter payouts said the primary factor was switching employers.”