Morning Coffee: Wall Street Bonuses Edging Upwards for Some
Bonuses on Wall Street should remain relatively flat this year, with certain sectors like fixed income and commercial banking seeing moderate increases in incentivized compensation, according to research firm Johnson Associates.
But do remember: The projected bonuses are being compared to those in 2011, when Wall Streeters, particularly fixed income traders, saw their year-end compensation slashed at a near-record pace.
"Following a year when year-end incentives declined by as much as 30 percent, the fact that many firms are able to keep this year's bonuses flat or slightly larger, is notable,” said Alan Johnson, managing director of Johnson Associates.
Fixed income professionals should see a 10% to 20% bump in year-end incentives compared to 2011, while bonuses in units like prime brokerage, asset management, high net worth, retail and commercial banking and hedge funds should remain relatively flat or increase up to 10%.
The holidays won’t be quite as sunny for those in investment banking, advisory and equities businesses, who may see as much as a 10% dip in incentivized compensation. Johnson notes that there will be significant variations in bonuses depending on the firm in question.
HSBC will make additional job cuts as it seeks to reduce costs by as much as $3.5 billion by the end of next year.
Paul Taubman, co-president of institutional securities at UBS, will retire at the end of the year, ceding sole control of the business to his current co-head, Colm Kelleher. UBS also announced that Mark Eichorn and Franck Petitgas were named global co- heads of investment banking.
Restructured I-Bank (Fox Business)
UBS will split its depleted investment banking business into two different divisions, one that will concentrate on individual investors and another that will focus on corporate clients.
Goldman Sachs has pared its number of partners down to 407, more than 30 less than it maintained back in February.
Brokerage house Rochdale Securities is reportedly looking for a lifeline following an unauthorized investment in Apple stock that has hamstrung the firm. Rochdale may announce a merger or investment in the coming days.
The Sandy Effect (eFinancialCareers)
Hurricane Sandy may have a short-term negative effect on hiring as banking executives need to turn their attention to repairing damages to their facilities and reconnecting with clients.
Bonus Rumor Denied (eFinancialCareers)
The rumor that UBS has slashed the bonus pool for its investment bank to zero appears to be erroneous, with one anonymous UBS exec calling the report “a piece of crap.”
Buzz Around the Office
A Blast from the Past (Politico)
Vice president Joe Biden is always there to defend the president. Too bad he forgot which one he works for.
List of the Day: Lack of Effort
Apathy is no friend of a job seeker. Here are three lazy mistakes that may prevent you from getting an interview.
- Never writing a cover letter, even if it’s optional.
- Crafting a bare-bones resume.
- Failing to create professional social media profiles.
