Discover your dream Career
For Recruiters

Will the Bonus Pool Shrink at Lehman?

This year has been a prosperous one for investment banks, but fourth quarter results at Lehman Brothers suggest some sluggishness. Will the bank slim down its bonus payouts as a result?

While Lehman broke full-year records - net revenues jumped almost 25% on 2004 to $14.6bn, and net profits leapt 38% to $3.3bn - sequentially the year ended on a bum note, with earnings down 6% on the third quarter and revenues down 4%.

The culprit was fixed income trading, where Q4 revenues plummeted 14%. With interest rates set to rise, conditions here could get worse in 2006. The question therefore is, will Lehman pay out bumper bonuses anyway? And will other fixed income-focused banks - like Deutsche Bank - suffer similarly? It's your call. Let us know what you think.

We will add your comment below. Please tell us if you would like to remain anonymous.

author-card-avatar
AUTHORAnonymous Insider Comment

Sign up to Morning Coffee!

Coffee mug

The essential daily roundup of news and analysis read by everyone from senior bankers and traders to new recruits.

Boost your career

Find thousands of job opportunities by signing up to eFinancialCareers today.
Latest Jobs
BNY  Mellon
Associate, Syndicated Loan Trading Administrator II
BNY Mellon
Pittsburgh, United States
BNY  Mellon
Associate, Syndicated Loan Administrator II
BNY Mellon
Pittsburgh, United States
BNY  Mellon
Associate, Middle Office I
BNY Mellon
Pittsburgh, United States
BNY  Mellon
Associate, Fund/Client Accounting Representative I
BNY Mellon
Pittsburgh, United States
BNY  Mellon
Vice President, Auditor Wealth Management
BNY Mellon
Pittsburgh, United States

Sign up to Morning Coffee!

Coffee mug

The essential daily roundup of news and analysis read by everyone from senior bankers and traders to new recruits.