Bloomberg Reports Year Of Zero Bonuses

Bloomberg reports that top securites firms like Goldman Sachs and Morgan Stanley and others are planning to cut bonuses by up to 50% this year and that many employees will simply get nothing at all.

The financial news provider quotes Stephen Kendall, head of European equities at Bank of America, who said: 'The very top people can still earn exceptional amounts of money, but the other end of the scale will be zero bonuses'. Kendall is doubtless a very 'top' person.

John Mack, who heads up CSFB and is now co-CEO of the Credit Suisse Group, confirmed earlier in the month that bonus payments will be scaled back to 'pre-boom levels'.

Merrill Lynch has said that it will still reward good performers, but must do so in line with what the business can afford.

Previously a zero bonus was a strong message that an individual did not have a future with the firm. This year, however, many will prefer to have a zero bonus and a job.

The most apt Bloomberg quote is from Mike Vogelzang, president and chief investment officer at Boston Advisors, who said: 'It's very hard to ask for a big bonus when there are dead bodies in the cube next door.....Nobody's expectations are very high'.

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