Wall Street bankers and traders could see their highest bonuses in more than a decade.
Booming deal activity, a hot IPO market, and rising equities have resulted in a profitable 2021. Now, bankers and traders are likely to see an increase in their bonuses anywhere from 20 to 35 percent. That’s a jump not seen since 2009. Economist Hank Lewis says there are a couple of reasons why they’re receiving so much more this year. First, bonuses are tied to higher volume and profits. Second, companies are fighting to retain top talent.
“The Great Resignation has prompted a lot of people, and that includes financial analysts and traders, to quit jobs where they are not happy or where they are not allowed to work from home at least a chunk of the time or do other things,” Lewis said.
A report from the compensation consulting group Johnson Associates indicates firms are concerned about turnover, even though, in many cases base salaries in the financial services industry are going up too.
“The notion of a lot of employers is a high bonus paid employee is a happy employee and is therefore less likely to quit and go somewhere else,” Lewis explained.
Financial giants like Goldman Sachs and JPMorgan are still dealing with a lack of bankers. The ones they do have are pushing longer work weeks.