Wall St. bonuses will be down this year for the first time since 2011, according to a new study by Johnson and Associates. Bobbi Rebell reports.
There may not be as much holiday cheer on Wall Street this year. Banks are trimming their compensation budgets- and bonuses are expected to fall for the first time since 2011. A new study by compensation firm Johnson and Associates predicts year end pay will be lower by 5-to10 percent on average. Kevin Kelly of Recon Capital: SOUNDBITE: KEVIN KELLY, MANAGING PARTNER, RECON CAPITAL (ENGLISH) SAYING: "Wall Street bonuses are going to be down this year because they are the main expense when it comes to that side of hte balance sheet so because they is such a large component of the expense side they have got to come down because they have wrangled out all of the other costs." Last quarter Goldman Sachs set aside 16 percent less money for pay than it did a year ago. JP Morgan set aside 13 percent less money for compensation. Among the hardest hit: Debt traders. Compensation could fall as much as 20 percent from a year ago because bond trading revenue is way down. Investment bankers who help companies underwrite initial public offerings may see their pay go down as much as 15 percent.. since many companies are staying private longer because of the choppy markets. On the plus side: investment bankers who advise companies on mergers who could be up as much as 20 percent, because global dealmaking remains strong.