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Wall Street Bonuses to Jump 40%
Expect political storm as recovery juices incentive pay
By Kevin Spak
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Posted Nov 5, 09 7:54 AM CST
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(Newser)
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The good times are back for much of Wall Street, with overall incentive pay set to jump 40% according to one key survey being released today. In businesses rebounding especially well, like fixed income and equities, the boost will likely be around 60%. That won’t quite bring them back up to 2006-2007 levels, but it could be enough to spark a political backlash, the Wall Street Journal reports.
Many firms have scurried to rework their bonuses, in some cases changing them from cash payouts to stock ones with deferred payouts, to encourage good, long-term bets. But other companies insist paying big bonuses is good business. “Our shareholders and customers expect Barclays to find the best people we can,” says Barclays’ CEO. “Our objective is to pay the minimum compensation consistent with competitiveness.”