Wall Street's Bonus Season 'Not Going to Be Pretty'

Experts are predicting cuts of 20%-50%
By Jim O'Neill,  Newser User
Posted Nov 6, 2008 7:49 AM CST
Halloween's past, but experts say bonuses on Wall Street are looking pretty scary.   (©Robnaldo)
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(Newser) – For the second consecutive year, Wall Streeters are likely to see their wallets lightened by bonuses projected to be down 20% to 50% from a year ago, reports the Wall Street Journal. And while everyone is likely to be a little blue, the biggest loss of green may be among high-profile execs who—under shareholder scrutiny—could see their paydays drop 70%.

Even star performers—assuming there are any this year—are likely to see flat bonuses. Even so, they won’t be panhandling anytime soon. Managing directors, who make a base of $200,000 a year, still will get bonuses upwards of $750,000 and lowly vice presidents will get $250,000 to pad their $150,000 pay. About half of revenues at investment banks typically are used for bonuses.