Wall Street bonuses are likely to rise this year showing once again how little Walls has changed. Despite the regulatory measures hanging over compensation, average bonus at investment and commercial banks is set to rise for the second consecutive year, while payouts at asset managers should rebound from a 2009 trough, Reuters reports, citing a study from compensation-consulting NY-based firm Johnson Associates.
The industry activity, business mix and evolving legislation are key bonus drivers for 2010, the report said.
More from Reuters:
“The report comes just weeks after the Treasury’s special master on executive compensation, Kenneth R. Feinberg, scolded 17 financial firms for making “ill-advised” payments to executives in the last couple of years, stoking public anger that flared when taxpayer funds were used to rescue the financial sector in 2008.
While some corners of Wall Street are likely to see bonuses rise by up to 15 percent this year, others could see a 15 percent drop, the report said.
Businesses that are likely see the biggest increases in bonuses include prime brokerage, because of higher client balances; equities-based asset management, because of growth in assets; and high net-worth units, because of increased market stability, according to Johnson Associates.”