Traders at investment banks are not only generating returns that are the envy of hedge fund managers, but their personal pay packages are getting a bigger bump as well.
According to Johnson Associates, a New York-based compensation consultancy, year-end bonuses for employees in a variety of investment banking roles on Wall Street will see double-digit percentage hikes this year. This excludes, of course, the former high flyers at bailed-out Citigroup and Bank of America, who now operate under the reign of “pay czar” Kenneth Feinberg.
At hedge funds and private equity firms, workers will see bonus cuts of between 15% and 25%, according to Johnson’s report. As unemployment in the US breaches 10% for the first time in decades, before they get too disgruntled these workers should be thankful that at least they have a bonus to cut.