NEW YORK, Aug 9 (Reuters) – Most Wall Street workers can expect double-digit increases in bonuses this year compared to 2020, while investment bankers could see the biggest checks in roughly a decade, according to a report by compensation consulting firm Johnson Associates Inc.
Last year, Wall Street bonuses were flat-to-down due to the economic hit from COVID-19 lockdowns, but this year’s bounce back shows that financial executives feel their businesses have recovered since the pandemic wiped $21 trillion off the markets between February and March last year, Johnson said. L1N2LE0GX
“The industry has performed at a level that last year we thought was impossible,” said Alan Johnson, whose report is closely watched by financial professionals.
Investment bankers will take home the biggest bonus checks in around a decade, thanks to an unprecedented surge in deal making this year, he estimates. Bankers who do underwriting work could enjoy a 30-35% increase in their 2021 bonus, while bankers who handle advisory work and equity sales and trading professionals could get 20-25% increases, he estimates.
Asset managers, hedge fund and private equity workers could see increases of 10-15%, while fixed income traders, retail and commercial bankers should expect bonuses to be flat, Johnson said.
The analysis is based on second quarter results from 10 asset management firms and eight major investment and commercial banks. Banks will communicate and begin paying out bonuses to staff from January next year.
In recent months, big banks have stepped up pay for investment bankers, particularly first and second year workers, to compensate them for a workload that is grueling even by industry standards. L1N2P904W
While money is nice, it may not be enough to make staff happy, said Johnson.
“It’s not really all about the money,” he said. “They feel overworked with no end in sight.”
Reporting by Elizabeth Dilts Marshall
Editing by Michelle Price and Mark Potter
TORONTO – Canada’s main stock index was up more than 100 points in late-morning trading, helped by strength in base metal and utility stocks, while U.S. stock markets were mixed.
The S&P/TSX composite index was up 103.40 points at 24,542.48.
In New York, the Dow Jones industrial average was up 192.31 points at 42,932.73. The S&P 500 index was up 7.14 points at 5,822.40, while the Nasdaq composite was down 9.03 points at 18,306.56.
The Canadian dollar traded for 72.61 cents US compared with 72.44 cents US on Tuesday.
The November crude oil contract was down 71 cents at US$69.87 per barrel and the November natural gas contract was down eight cents at US$2.42 per mmBTU.
The December gold contract was up US$7.20 at US$2,686.10 an ounce and the December copper contract was up a penny at US$4.35 a pound.
This report by The Canadian Press was first published Oct. 16, 2024.
TORONTO – Canada’s main stock index was up more than 200 points in late-morning trading, while U.S. stock markets were also headed higher.
The S&P/TSX composite index was up 205.86 points at 24,508.12.
In New York, the Dow Jones industrial average was up 336.62 points at 42,790.74. The S&P 500 index was up 34.19 points at 5,814.24, while the Nasdaq composite was up 60.27 points at 18.342.32.
The Canadian dollar traded for 72.61 cents US compared with 72.71 cents US on Thursday.
The November crude oil contract was down 15 cents at US$75.70 per barrel and the November natural gas contract was down two cents at US$2.65 per mmBTU.
The December gold contract was down US$29.60 at US$2,668.90 an ounce and the December copper contract was up four cents at US$4.47 a pound.
This report by The Canadian Press was first published Oct. 11, 2024.
TORONTO – Canada’s main stock index was little changed in late-morning trading as the financial sector fell, but energy and base metal stocks moved higher.
The S&P/TSX composite index was up 0.05 of a point at 24,224.95.
In New York, the Dow Jones industrial average was down 94.31 points at 42,417.69. The S&P 500 index was down 10.91 points at 5,781.13, while the Nasdaq composite was down 29.59 points at 18,262.03.
The Canadian dollar traded for 72.71 cents US compared with 73.05 cents US on Wednesday.
The November crude oil contract was up US$1.69 at US$74.93 per barrel and the November natural gas contract was up a penny at US$2.67 per mmBTU.
The December gold contract was up US$14.70 at US$2,640.70 an ounce and the December copper contract was up two cents at US$4.42 a pound.
This report by The Canadian Press was first published Oct. 10, 2024.
