Bonus pools could decline by as much as 20% for some Wall Street workers this year, with incentive pay falling at almost every type of financial-services firm, according to compensation consultant Johnson Associates Inc.
Bloomberg News reports that the sharpest drop probably will be in fixed-income sales and trading, as well as investment-bank underwriting, which may tumble 15% to 20% from a year earlier, Johnson Associates said Tuesday in a report.
Those in investment-banking advisory services and management positions at banks could see declines of 10 percent to 15%, the consultant said.
'Our clients believe that there really is no light at the end of the tunnel', Alan Johnson, founder and managing director of the New York-based consultant, said in a phone interview. 'People no longer believe this is cyclical; it’s a systemic change in the business. For the results to get better, we’re going to have to do a lot more cost-cutting'.
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