Friday’s Headlines: Wall Street to Get Bonus Bump

Forget shareholder outcry – banks are expected to boost bonuses by an average of 5 percent to 15 percent this year and will dedicate a larger portion of profits to comps, according to Reuters, which cites consultancy Johnson Associates (no relation to the author). Not surprisingly, fixed income traders can expect the biggest benefit from this trend, with bonuses growing by 15 percent to 25 percent. Equities traders, meanwhile, will see bonuses be up by 10 percent to 15 percent. Those in asset management, prime brokerage and high net worth will get 5 percent to 10 percent increases, and hedge fund employees will see bonuses rise by 5 percent to 15 percent. The news agency writes:

Johnson Associates said 2012 bonuses are expected to be constrained for top executives whose compensation packages are detailed in proxy filings due to "public optics" and regulatory pressures. In recent years, banks have introduced clawback provisions, more stock awards and deferred pay to align employees' risk taking with companies' long-term welfare.

Other News:

Facebook begins trading at $104 billion valuation: Nine things you should know about the deal. [Bloomberg]

Spanish banking sector downgraded. [CNN Money]

Hedge fund conference is all doom and gloom.[Businessweek]

HSBC may sell off its British branches if new regulation proves too tough. [Telegraph]

Fortress is looking to buy rights to service mortgages. [Bloomberg]

Dimon will testify before Congress. [Reuters]

Silicon Valley’s unique twist in wealth: no Ferraris. [NY Times]