Compensation for Wall Street’s equities salesmen and traders is expected to rise in 2013, while total pay for employees in fixed-income units may drop 10%, according to recruitment firm Options Group.
Bloomberg reports that equity-derivatives traders and salesmen globally may get a 19% increase in compensation, the most among categories detailed in a report this week by New York-based Options Group.
Professionals in both interest-rates trading and securitized products may see a 19% drop in pay, according to the report.
The largest investment banks cut the amount set aside for compensation so far this year amid investor pressure to improve profitability. Average compensation probably will climb 4%, driven by increases at smaller banks and boutique advisory and investment firms, according to the 11th November report.
'It has been a very challenging operating environment for the past four consecutive years, and each bank has chosen to invest more in some areas and scale back in others', Options Group Chief Executive Officer Michael Karp said in a statement. 'Bulge-bracket banks used to consistently pay higher than other sell-side firms, but this is no longer the case'.
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