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Subscribe to RSSThe folks on Wall Street appear to be tightening the purse strings.
A new report finds that year-end bonuses for Wall Street workers are expected to fall by an average of 20 to 30 percent this year, as compared to last year.
Blame the sluggish economy and the topsy-turvy markets. The report from Johnson Associates, a compensation consulting firm, said recent economic uncertainty and roiling world markets are driving many financial services firms to reduce the pot of money they allocate toward bonuses.
“This year started with great promise for a banner year on Wall Street, but hopes for larger bonuses faded over the summer and continue to dim as we approach year end,” Alan Johnson, managing director of Johnson Associates, said in a release announcing the results.
Wall Street bonuses also fell sharply in 2008, in the wake of the financial crisis. But they rebounded in 2009 and 2010 even as many other sectors of the economy continued to struggle.
This year, however, financial services firms also have been dragged down by the difficult economy. Some banks reported disappointing earnings in the most recent quarter, and there also have been other signs of belt tightening.
Bank of America, for example, has announced plans to lay off 30,000 workers.
The Johnson Associates report said traders and senior management are expected to see the biggest hits to their bonuses. Some Wall Street workers, such as those dealing with very wealthy clients, could still see a slight bump in bonuses.
The company bases its estimates on public data and its own analysis of financial institutions.
The outlook for 2012 isn't so cheery for U.S. bankers, either. Johnson Associates said it expected firms to continue to cut jobs in the U.S. but add staff in emerging markets. Still, some financial services employees may see their bonuses improve.
Of course, Wall Street workers probably won't be too pinched. Even with a smaller bonus, most take home handsome salaries — something that hasn't gone unnoticed by the Occupy Wall Street movement.
In an interview with The New York Times’ DealBook, Johnson said he expects people to continue to focus heavily on how much money Wall Street workers make, especially in light of the Occupy Wall Street movement.
Johnson told The New York Times that Wall Street executives “haven’t gotten the memo at all.”
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Well, duh. What did you expect them to do with protesters on their doorstep protesting how large their bonuses are on top of outrageous salaries?
Everybody who is getting any bonus at all this year, raise your hands.
Now let's round up all those with their hands up, 'cause they're mostly leeches sucking off the financial system and producing NOTHING.
The protester had nothing to do with the size of their bonuses.
Old news. Bonuses have nothing to do with OWS. Companies let NYC know months ago that their bonuses will be cut in order for the city to adjust any budgets beforehand. NYC gets a lot of their tax revenues from Wall Street and these bonuses, 1 in 8 jobs in NYC is tied to the financial industry. So less bonuses equal less tax revenues and possibly, more layoffs of muni workers and teachers.
They said Wall Street workers, not CEOs. They're talking about average joes, not the slimeballs at the top.
These destitute execs will only be getting 3 million instead of 5. Poor things. They may have to apply for federal aid.
What ever they get, they're still overpaid.
Awww, just a $1,000,000.00 bonus this year - just not sure how these folks are going to get by.
My heart is just breaking for them.
I weep for you, you scurvy fiends, I dearly sympathize... .
They probably will have to make do with a few million and cut a few thousand employees.
The CEO's will still get theirs . It's just the working stiffs that will go without .
That was what I was thinking. I am one of those working stiffs and I do usually get a small bonus, but I always wonder if they will cut it (the last 2 firms I worked for cut the bonuses completely for the branch assistants).
That's true. Nothing like reading about the CEO getting a larger bonus after announcing another round of layoffs.
Boo Frickin Hoo... Don't feel 1 bit sorry for those b@stards!!
What is sad is that this affects all people who get a bonus. Believe me, if the CEO's miss 20% or 30% they won't feel it. But someone making $60K will.
This is why when I went to work for a wall street company, I asked for a good base pay. I never pay attention to bonuses.
Wall Street bonusses coming from many diffirent ways. While Bank of America laying off 5,000 bee employees, BoA management receive $3-6 million in severance package. Not bad at all. Citigroup, Chase, Wells Fargo are the same.
If it is not enough, banks will figure out the way to squeeze its customers...Don't be naive.
Yeah, out of the goodness of their hearts.
The control Wall Street has had on the direction and fortunes (misfortunes) of the United States must end now. Their control is not limited to any one political party and corruption and greed are the only constants there. We have gladly given these large banks all the power in telling us what to buy, when to buy it and how much it is worth.
They cannot change and will not change without us forcing them to. While politicians blame each other, the major financial institutions funnel hundreds of millions to make sure that they make the decisions no matter who is in office.
We lose billions and now trillions while these banks come up with the next scheme to fleece us with. These institutions are responsible for every boom and then the major bust at the end of it. Then they receive the real big "welfare" in lax regulations, tax breaks and huge bailouts every 10 years or so that they bust us.
The sooner we realize it's not one politician's or party's fault - the sooner we can change their control over us. Wake up America.
People blame Wall Street but it is the government that is selling out the country by rewarding businesses for exporting jobs.
Wall Street is a Pimp and Congress is the Whore, both equally responsible
How is the government rewarding businesses for moving jobs overseas?
It's called tax incentives/breaks.
the reward: is the lack of penalty for being traitors.
the bottom line is that they moved work overseas in order to increase their bottom line, ie bonus's, profits, dividends "and" reduce their liabilities and taxes by minimizing their operations here in the u.s. for cheap labor elsewhere.
Wall Street may be the pimp and Congress may be the whore, but this system is so dysfunctional that it is the public that is being screwed, not Wall Street or Congress.
Well, who owns and operates the government right now? It's certainly not you and me!
They're probably going to expect the taxpayers to chip in and bring their bonuses back up to the previous years level like they did in 2008. It's funny when financial and corporate leaders tank their businesses and the entire economy, they are worthy of a "performance" bonus. It's almost as if they feel they are "entitled" to one. Capitalism at it's finest. Maybe that's the solution for the Social Security and Medicare issues the Conservatives/Republican'ts/Tea Putzes have. We can just rename it "Annual Retirement Bonus! That's something they should be able to understand! And I can live with that even though I and my employer make contributions to fund it.
Amazing! I think this is the first time I can recall Wall St. actually experiencing at least some of the "austerity" the rest of us are getting forced down our throats by the economy and greedy corporations.
Bet you'll hear them protesting, too!
Wonderful ,but it's too hard to believe.
Financial firm profits are down so bonuses will be down as well. Most seem happy at that news. But there is ALWAYS a flip side. Cities and states with many financial firms get a large share of their taxes from those employees and firms. New York City and State, and likely Connecticut, will lose substantial tax revenue that will have to be made up by cutting government services, raising additional taxes or both. Glad I don't live there.
Our government serves who, now?
Not the common man.
Think about this when you vote.
the politicians should wear the logo's of the corporations that sponsor them, like those race cars that have emblems over them.
one day votes will have to pick not between democrates and republicans, but candidates being supported by target, sears, home depot, boeing, walmart, facebook, etc...
if i'm not mistaken Target not only uses red for its logo, but it also used indiscreetly to shows its support for the republican party.
@SHOPPERBEN - Too bad I can only vote once for your comment... spot on!
You all aren't getting the real gist of the story. A "lower" bonus doesn't mean they're not getting them, or anything like that. A "lower" bonus still means $3-4-5 million, or more (depending on the person). And if that doesn't get your goat, the people getting "just" $3 million, will actually be upset about that and probably start looking for another job.
Rest assured, there's very few on Wall Street that will be going hungry this holiday season.
Why of course. They are buying tents, heaters and porta-johns for the OWS crowd.
Who said Wall Street has no heart ?
How am I going to sleep tonight? America has not been kind to the wealthy of late.
Oh? But it has!
Wall Streets bonuses may have gone down but congress income sure has not dropped. Mitch Mcconnell's income has gone up 52% from 2010 until now and you can bet that every one in congress income has gone up at least 25% if not more.
ha! this is b.s. and an attempt to mislead the public.
the fact is that dow jones is flirting around the 12,000 mark and when compared to this time last year, the mark is higher.
therefore, bonus's will be generous for wall street, the banks and every greedy rat in between.
Awww. That's too bad. I sowwy... NOT!
How about Wall street give their bonuses to teachers?
Lose every investor's dollars invested and they will still end up with some kind of bonus. Bonus will be smaller but you can bet its more money than the average family makes for 10 years combined. Is this just PR to make us think they are changing their ways. I don't buy it.
Poor babies.. Only 4 mil insted of 5. They must be running out of people to fire and scams to run.
Anybody that believes that the US government is running the show and not the multinational global corporations is naive!
The headline announcing that the bonus would be less this year seems an even more blatant slap in the face because of the headline yesterday about the record number of people below the poverty line. Talk about kicking us when we're down.