Wall Street Bonuses Likely To Remain Bigger Than Ever

Posted by: Emily Thornton on October 6, 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.

Reader Comments

John

October 6, 2009 2:15 PM

Why do things any differently when there is nothing to discourage the behavior? As long as the upside for taking the risk outweighs the downside, no one will give the downside a second thought, other than that the taxpayer that will be footing the bill for the consequences. Time to end the notion of "too big to fail".

Jakub

October 6, 2009 3:02 PM

What I want to know is why these 'too big to fail' companies are able to pay off their debt so quickly? Only mere months after being borderline bankrupt? Shouldn't we have charged them an arm and a leg like everyone else seems to get for loans?

somebody2009

October 6, 2009 3:46 PM

This is a crisis of political and economic systems: financial speculators became analogous to an employee who steals money from his employer, risks it at the lottery and takes away all the money if he wins or steals more from the cash register if he loses.In the end America will be ready to embrace its own Adolf Hitler or Joseph Stalin who will promise to recreate jobs and do away with the financial corruption.

Morris

October 6, 2009 3:58 PM

It only happens in the criminal nation.What a bunch of stupid taxpayers and debt-slaves.

Diem N

October 6, 2009 4:59 PM

The Headlines said it all:
Typical Workers saw their 401k down 24.3% and Wall Street Bonuses remain Bigger Than Ever. American workers will always get screwed by wall street. It's a den of thieves.

Carl Pearson

October 6, 2009 7:52 PM

Some disabled people in the world don't like to groom or get dressed a lot.
Here are the reasons:

1. Certain disabled people might seemed to not care about their appearances.
2. Grooming might not be fun for some disabled people.
3. Looking good can be easier said than done.
4. Certain disabled people can overreact if they hear that they don't look good or groom properly.
5. Putting a lot of clothes and being well dressed can take lots of time to do it.
6. Certain disabled people can overreact if they are told that they have to groom everyday.
7. Buying and trying clothes might not be something that certain people are not crazy about it.
8. Some disabled people can be ignorant if their clothes looks good or not.
9. A bunch of people might not appreciate strict grooming and dress codes.
10. Certain special needs people might not care if the place is clean or messy.

A solution to the problem of some disabled people not appreciating to groom is that it's important for every stores to sell free grooming and shaving machines.
That very best working grooming machines should take no time to be extremely well-groomed and well-shaved.

Most job workplaces should allow men to wear nice looking shorts and shirts if the weather is warm or hot. Most schools and job workplaces should allow girls and women to wear dress t-shirts and bikini under ware without pants for them to look so good. Girls should wear g-string if they dance or swim in summer time.

In conclusion, every stores in the world should sell grooming and shaving machines as a way for people to look their very best in almost no second of grooming.

Carl Pearson

October 6, 2009 7:53 PM

The Hurricane Katrina had hit the houses because the water level rises too high. don't want to get swept. That's the effect of Global Warning. People climbed up to the roofs because they didn't want to get swept away from the storm. There were rescue helicopters. After, the water receded there was a lot of flooding. Some people went to a nearby stadium to escape the storm. For those people, initially there was not enough food or supplies. The reason why there were not enough supplies was because George W Bush failed to act in time.

After the water levels went down, millions of Americans donated time and money to rebuild New Orleans. Meteorologist are studying how to prevent disasters in the future.
The meteorologists and governments should build automatic water proof shutter seawall. The sea wall on a level overly low should be made out of concrete and water proofed. The extremely high sea wall will disappear after any hurricanes, flooding, and earthquakes. The houses too close to the beach and the equator should have weather and security sensors that activates in emergencies, hurricanes, flooding, and earthquakes up to a scale of 10.

If the disaster is not bad, the water proofed sea wall will rise up to an elevated hundred feet. The houses too close to the beach should have water proofed high sea walls that's rise up to an elevated 1,000 feet.

If people put Ajax and chlorine, it could get rid of the mold. Every elevated modern beach house should have hypersensitive sensors detecting the amount of molding.

Beach cities including New Orleans and residential or commercial zones on a fault line should be on ground level when a computer sensor is sensing any disasters from 1 to 10 ranges. The computer sensors should have back up computers if it's not working the perfect way. Ground Zero would be the beach, but not the beach houses. The houses too close to the beach would go up anywhere from 100 feet to a thousand feet range.

The 10 billion dollars estimated for this project should be obtained from charities, higher taxes and possibly help from other countries in the United Nations.
Here are the many strategies to raise charities:
1) The United Nations should cut down on corporate funding unless they help financially support the project.
2) Famous people and movie stars should support project causes, publicly (advertisements especially in neighborhoods who will be put on TV and media sources).
3) Everybody in New Orleans and in the tropics should bring sympathetic support where there's places with disasters.
4) The web sites should set up explaining the projects. It would say how much donation money is donated so far.

Right now, George W Bush left the country in debt. The government should get back on it's feet before launching the efforts for this project. Finally, I would like to have a creative name for this project. The Project's name should be called Project Disaster (#1-10) Prevention. The Ground 0 Area should be about a hundred miles away from the beach.

When people go to work during any disasters, the residential, commercial and industrial zones should build automatic transportation elevators to get to their homes during rush hour. The transportation elevators should make people safe while going to work when any scale disaster is happening. Ground 0 Disaster Area should be about 20 miles away from the beach.

If a disaster takes place, any flights should be canceled if it goes over the danger zones. In preparation for an impending disaster, all flights that could be affected by the storm should be canceled. If there is a storm, any web sites and local news can cover it.
The meteorologists will predict how big the storm will be and where the airplane will land. The airport directories will give take off airplanes already in the air at the nearest airports and emergency landing areas when it's during or after a disaster warning.

The story best describe how to keep people and transportation safe during the worst disaster in the world. In conclusion, the essay will discuss about people, boats, ships and beach houses to be prepared for storms similarly or worse than Hurricane Katrina and Bill.

bob saget

October 6, 2009 8:14 PM

Carl,

Are you some kind of crazy person?

I think you are on the wrong board.

Concerned Citizen

Carl's left me confused

October 6, 2009 9:24 PM

Carl: You are a freaky genius, or just freaky.

Deano

October 7, 2009 9:14 AM

I believe Carl works on Capitol Hill...

Speak-Ing

October 7, 2009 11:38 AM

Wall Street Bonuses Likely To Remain Bigger Than Ever – yes as long as the Big Bailouts are happening!!!!

Would this have happened otherwise?

Cincygirl

October 8, 2009 7:32 AM

I'm a student at U.C. (Business Admin. major in finance) and was doing some research for a paper I'm required to write taking two different sides of any topic. I thought I'd write one in favor of bonuses and one against...but after reading Carl's comment, it may be more interesting to write my paper in favor of women wearing g-strings while dancing and one against. My prof may give me a better grade. I just have to figure out how to tie it in with Wall Street bonuses. Hopefully this won't be the required dress code by the time I graduate.

Cincygirl

October 8, 2009 7:33 AM

I'm a student at U.C. (Business Admin. major in finance) and was doing some research for a paper I'm required to write taking two different sides of any topic. I thought I'd write one in favor of bonuses and one against...but after reading Carl's comment, it may be more interesting to write my paper in favor of women wearing g-strings while dancing and one against. My prof may give me a better grade. I just have to figure out how to tie it in with Wall Street bonuses. Hopefully this won't be the required dress code by the time I graduate.

Cincygirl

October 8, 2009 7:34 AM

I'm a student at U.C. (Business Admin. major in finance) and was doing some research for a paper I'm required to write taking two different sides of any topic. I thought I'd write one in favor of bonuses and one against...but after reading Carl's comment, it may be more interesting to write my paper in favor of women wearing g-strings while dancing and one against. My prof may give me a better grade. I just have to figure out how to tie it in with Wall Street bonuses. Hopefully this won't be the required dress code by the time I graduate.

Rajan

October 8, 2009 8:09 AM

Right now, George W Bush left the country in debt. The government should get back on it's feet before launching the efforts for this project. Finally, I would like to have a creative name for this project. The Project's name should be called Project Disaster (#1-10) Prevention. The Ground 0 Area should be about a hundred miles away from the beach.

John Davis

October 8, 2009 8:17 AM

WOw it doesnt get any better dude!

RT
www.anon-web.int.tc

Kendra Roberts

October 8, 2009 10:04 AM

Great post!

Igle

October 8, 2009 5:25 PM

It's ridiculously funny how a bunch of stinky hairy men from a country where they don't even have toilet paper managed to take advantage of you to such an extent. You americans, are the best at making their plan come alive. You self destruct as they watch and prosper. And we laugh uncomfortably because I'd be damned if I didn't have higher expectations.

Adi @ The Management Blog

October 13, 2009 6:58 PM

The crazy thing is that financial incentives such as these have been shown time and time again to provide poorer results and less motivation amongst employees to do a task well. I covered just such an experiment yesterday if anyone wants to read (http://blog.managers.org.uk/post/Rules-of-motivation-from-the-mouth-of-babes-754.aspx)

That bonuses seem to be handed out, or expected at least, by all staff seems to suggest that either bonus is the wrong term to use now or that the renumeration policy of leading financial institutions needs severe reevaluation.

It seems however that far from being too big to fail, many leading banks are now too complex to manage. The regulators around the world certainly didn't have a handle on what was going on, and with the bonus culture as it is you would have to argue that many senior managers didn't have a clue what was going on either.

mike teckel

October 20, 2009 4:48 AM

nice post!

tickle feet

halley

November 2, 2009 9:58 AM

I do not agree with your reason for the
bonus rise

OXYGEN

March 27, 2010 5:06 PM

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