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But payouts for many workers in the financial services industry are likely to be lower than in 2019, according to new analysis from Wall Street compensation consultancy Johnson Associates.
“The pandemic is wreaking havoc in many sectors of the US economy this year, and the financial services industry is no exception,” said Alan Johnson, chief executive of Johnson Associates. “While many segments of the industry have rebounded, the majority of professionals in traditional and alternative asset companies as well as retail and commercial bankers will see lower bonuses.”
As a starting point for comparison, the average premium paid to those in the securities industry exceeded $ 164,000 last year, according to the New York City Comptroller’s Office.
The comparison of bonus checks from Wall Street pros year over year depends on the services they provide.
Johnson Associates noted that the major investment and commercial banks had “strong investment banking performance” but that their commercial and retail banking activities were weaker, which will push premiums down. And while there has been a “dramatic recovery” in asset management, hedge funds and private equity, incentives are expected to decline further moderately.
Johnson Associates believes those in retail and commercial banks will experience the steepest declines. Their payouts are likely to be 25% to 30% lower.
Investment bankers could see declines of 15% to 20%, while management and staff in financial services could see declines of 10% to 15%.
Premiums for those working in private equity and hedge funds are expected to drop between 5% and 10%.
But there are a few groups that will resist the downtrend, thanks in large part to the continued uncertainty of 2020 and often high volatility that has led to record trading this year.
Professionals in fixed income sales and trading could see a 40% to 45% jump in their bonuses, while those in stock sales and trading could see a 20% to 25% increase.
Underwriters at the investment bank, meanwhile, are in line for a 35% to 40% increase, Johnson Associates reported.
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