Posted by: Emily Thornton on October 06, 2009
Here are some interesting results of a survey I received in my inbox today: eFinancialCareers.com surveyed 1,074 finance professionals in September about their bonus expectations.
Of the group, 83 percent anticipate receiving bonuses this year, while more than one-third of the finance professionals expect even fatter payouts in 2009 than they received last year. The majority, or 57 percent, of financial services professionals expect their year-end bonuses to be flat or higher than last year’s payout.
Why would that be? Among those looking forward to an increase, 33 percent believe it will be a result of last year’s abnormally low bonuses due to the credit crisis. However, a relatively even match of 24 percent and 23 percent attribute the rise to personal performance and firm performance, respectively.
More than half, or 52%, of the professionals noted their firms have revised bonus policies. But there was a broad consensus that attitudes toward risk haven’t changed. Among financial professionals who take risk, 60 percent said that their current bonus policies have no impact on risk taking. Meanwhile, 28 percent indicated constraint and 12 percent are emboldened by their firm’s bonus policy to take additional risk.
Finance professionals working at bulge-bracket or commercial banks were more likely to have a new pay structure, while alternative asset management and boutique bank employees were the least likely.
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