19/02/2013
Bonuses down sharply on Wall Street
2012 bonuses paid to finance professionals on Wall Street are disappearing like snow in the sun. According to a recent survey by eFinancialCareers, the average bonuses paid for last year were 36% down compared with the previous year. Front office is the hardest hit by the decline, down 38% in one year, compared with -15% for middle office and -2% for back office employees. efinancialCareers also reports that Wall Street is increasingly subjecting bonuses to performance conditions. 13% of respondents say that at least part of their bonus depends on performance, compared with only 7% in 2011. “Whether or not the performance of the business is the reason for bonuses to fall, many finance professionals estimate that the performance of the company is not enough to guarantee a good bonus: now, measurable personal performance is the important thing,” the study says. As a result, eFinancialCareers predicts that heads of human resources will have more trouble recruiting due to a lack of assurances about bonus levels. A decline of bonuses may also result in an increase in the set portion of salaries.
