Bloomberg Publishes Top Firm Bonus Payout Estimates

Bloomberg estimates that employees / executives at Bear Stearns, Goldman Sachs, Lehman Brothers, Merrill Lynch and Morgan Stanley will share around $36bn in bonus payouts this time around - a 30% increase on last year's record high.

According to the news agency the 'average' windfall (note - chances are YOU will not get anything close to the 'average' payout!) for the 173,000 employees / executives at these firms will be enough to acquire 'a $165,000 Bentley Continental GT - with some change!

Bankers at European firms are thought likely to have a slightly tougher time of it (their third-quarter profits have not been as good at the US boys), but nevertheless, the Centre for Economics and Business Research predicted last month that bonuses for London-based bankers would hit $16.7bn for 2006 - up 18% on last year.

Bloomberg has published a league table which shows projections / estimates for total and average bonus payouts for each of the five biggest US securities firms, based on estimated revenue, compensation and benefits pools and number of employees. Here it is:

Bear Stearns

Total Revenues - $9bn

Compensation / Revenue Ratio - 48.8%

Total Compensation Pot - $4.4bn

Bonus Pool - $2.6bn

Employees - 13,000

Average Compensation Per Employee - $338,462

Average Bonus - $203,077


Goldman Sachs

Total Revenues - $35.7bn

Compensation / Revenue Ratio - 47.4%

Total Compensation Pot - $16.9bn

Bonus Pool - $10.2bn

Employees - 25,647

Average Compensation Per Employee - $658,946

Average Bonus - $397,707


Lehman Brothers

Total Revenues - $17.4bn

Compensation / Revenue Ratio - 50.1%

Total Compensation Pot - $8.7bn

Bonus Pool - $5.2bn

Employees - 24,775

Average Compensation Per Employee - $351,160

Average Bonus - $210,696


Merrill Lynch

Total Revenues - $32.5bn

Compensation / Revenue Ratio - 49.5%

Total Compensation Pot - $16.1bn

Bonus Pool - $9.7bn

Employees - 55,300

Average Compensation Per Employee - $291,139

Average Bonus - $174,683


Morgan Stanley

Total Revenues - $33.6bn

Compensation / Revenue Ratio - 41.8%

Total Compensation Pot - $14.0bn

Bonus Pool - $8.4bn

Employees - 54,349

Average Compensation Per Employee - $257,594

Average Bonus - $154,556


How Bloomberg calculated the figures -

Total Revenue - the average estimate of analysts surveyed by Thomson Financial

Compensation / Revenue Ratio - the average of the last 5 years for each firm

Total Compensation Pot - Estimated revenue multiplied by the average ratio of compensation to revenue

Bonus Pool - 60% of estimated total compensation

Employees - Total number of full-time employees reported at the end of the third quarter

Average Compensation - Estimated compensation divided by total number of employees

Average Bonus - Estimated bonus pool divided by the total number of employees


Source - Bloomberg

www.bloomberg.com

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