May 13 Asset managers on Wall Street may again
take home higher bonuses this year as rising stock markets boost
inflows into funds, according to a forecast by compensation
consulting firm Johnson Associates.
The firm forecast a moderate rise in bonuses across the
financial services industry as earnings improve mainly due to
significant cost cutting.
Employees in low-risk, fee-heavy businesses such as asset
management may see their bonuses rise by as much as 10 percent,
while those in the volatile and risk-heavy business of
fixed-income trading may see their bonuses fall by as much as 15
percent, according to the compensation survey.
The firm also said slow growth in pay was impacting employee
morale at investment and commercial banks.
"Improving work environment and culture can help somewhat to
counteract potentially lower compensation prospects for the
future," Johnson Associates said.
Big banks are no longer top payers, the firm said, adding
asset management and other options provide similar or higher
Johnson expects bonuses of top executives at Wall Street
firms to be mixed, ranging between a 10 percent drop and a 5
M&A, PRIVATE EQUITY DOING WELL
Investment bankers working on mergers and private equity
employees are likely to have a strong year with their bonuses
rising by 5-15 percent, while those in underwriting may see
their bonuses range flat to up 10 percent.
However, equities traders may see their bonuses shrink by up
to 10 percent, given mixed results across products.
Those in prime brokerage will likely see bonuses rise by
5-10 percent, while bonuses for commercial and retail banking
employees may range from flat to up 5 percent.
(Reporting by Anil D'Silva in Bangalore; Editing by Sriraj