Tags: Wall | Street | workers | pay | cuts

Wall Street Workers Face Pay Cuts of Up to 30 Percent

Tuesday, 29 Nov 2011 06:06 AM

By Dan Weil

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Now isn’t a great time to be working on Wall Street. Staffers at the biggest financial services firms will likely see their annual compensation drop 27 percent to 30 percent this year from 2010, according to a new study from Options Group, an executive search and consulting firm.

That would put Wall Street pay at its lowest level since 2008, when the financial crisis raged. A 35 percent to 40 percent plunge in bonus payouts will lead the compensation totals down, the study says, according to The Wall Street Journal.

Bank profits have waned this year, so Wall Street firms can’t be as generous to their workers. The earnings slowdown "has created an environment where firms pay their employees less to do more," the survey says.

The volatility in financial markets has made it a tough year for Wall Street traders, and their compensation will suffer as a result.

An investment-grade-bond trader at the managing director level of a major securities house will probably earn about $1.8 million this year, the study says. That represents a sharp decline from $2.9 million in 2010.

More cuts may be coming. Goldman Sachs devoted 44 percent of revenue to compensation in the first nine months of the year, compared to 39 percent for all of 2010, Bloomberg reports.

And that increase came despite the fact that Goldman slashed compensation by 24 percent during the first nine months of 2011.



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