Wall Street banks have faced a decent crisis so far. This is unlikely to lead to the payment of bumper bonuses for bankers and traders, as CEOs and boards are working on the optics of large payments in the face of financial difficulties on Main Street.
At Bank of America Corporation, bonus pools can be flat, according to people familiar with bank planning. Some JPMorgan Chase & Co, according to people familiar with the situation. Trader bonuses are expected to increase, but in the first nine months of 2020, New York-based banks’ transaction revenues have not increased by 39%. Morgan Stanley states that it will pay a $ 1,000 bonus to most employees under $ 150,000, but does not give any guidance on paying high-income staff.
“A good year is a bad year,” said Gilbert Swan, a recruiter for Sheffield Howarth in London, whose clients include a global investment bank. “Flats may be new, as people get paid significantly less than a year.”
Payments to bankers and traders have been particularly controversial during this bonus season. Millions of people have lost their jobs as the economy shuts down and businesses go bankrupt in the coronavirus outbreak. However, the banking sector has nearly endured the crisis, thanks to trillions of dollars in funding and support from government and central bank borrowers. Investment banking profits surged as more transactions in volatile markets and companies raised new debt and stocks.
Today, traders and bankers are hoping to be rewarded for their efforts. This poses a dilemma for CEOs and boards worried about how politicians, regulators and taxpayers will pay for the crisis over the years to come. Even the best performers may find that bonuses have been reduced due to this general perception issue.
For bankers, 2020 was a bad year to be a good one
Source link For bankers, 2020 was a bad year to be a good one