New York bankers e London StWe are preparing to receive year-end bonuses that recruiters they estimate it to be 30% to 50% lower, while some may not receive any as the deal fails and economic pessimism sets in. socket.
Financiers are disappointed when their payroll arrives in the first quarter and thousands of their coworkers could be fired after hundreds were laid off this year, according to recruiters and compensation experts.
Last year, the industry awarded the biggest prizes since 2006 as the economy recovered from the pandemic.
But this year, the pace of mergers and acquisitions and equity offerings slowed sharply as debt finance markets crashed and stock market volatility hit valuations. The prospect of a recession also increased as the year progressed, with the Federal Reserve aggressively raising interest rates to deal with falling inflation the economic activity.
For Goldman Sachs Group Inc’s US CEOs, tough times will likely result in a 40% to 45% drop in average pay by 2022, according to data provided to Reuters from Sheffield Haworth, a senior executive recruitment firm.
At rival Morgan Stanley, the average salary for senior bankers is expected to fall by 35-40 per cent according to the report by Julian Bell, head of the Americas at Sheffield Haworth and Natalie Machicao, vice chair. It’s a heady reversal for shopkeepers who racked up record profits for their businesses last year and earned eye-watering payouts.