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Bad times in sight for Wall Street bonuses, report says

Wall Street workers can expect their bonuses to be cut to the bare minimum this year and some positions could be cut, a report released Monday by consulting firm Johnson Associates read.

Banks are faced with rising costs with the explosion of unemployment caused by the health crisis which imposes on them provisions of billions of dollars for credit risks.

These costs should have a negative impact on the rewards awarded to employees, starting with bonuses, the report reads, which is closely followed by finance professionals.

Only traders and investment bankers involved in corporate loans could see their premiums increase compared to last year, due respectively to increased volatility in financial markets and the financing needs of companies, according to the Johnson Associates report.

Conversely, those who work for speculative funds (“hedge funds”), in asset management, private equity or retail banking can expect to see their bonuses reduced by. up to 30%.

Rising costs and pressure on earnings could lead asset management companies and banks to cut jobs before the end of the year or early 2021, the report said.

(Elizabeth Dilts Marshall, French version Patrick Vignal, said by Jean-Michel Blot)

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