Bonuses at Wall Street firms will rise 15% this year despite ongoing pressure from investors, regulators and politicians about compensation levels, according to compensation-consulting firm Johnson Associates Inc.
Reuters reports that the projected rise in pay would come after a 5% increase in 2012, which was considered 'disappointing', Alan Johnson, head of the firm, said in a presentation to the Wall Street Compensation and Benefits Association that was released publicly on Friday.
Johnson expects CEOs to receive pay packages of $12m to $25m, even as investors question what they perceive as a misalignment between performance and pay.
'Overarching frustrations (and) questions remain unsolved', Johnson said. Among those questions are, 'What is the appropriate balance between employees and shareholders ?' and 'Why can't incentives go to zero ?', he added.
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