Equities and fixed income traders at investment banks can look forward to a healthy year-end bonus this year, outpacing their peers in other areas of the financial services industry. So says Johnson Associates, Inc., a New York-based compensation consulting firm in Marketwire news release.
The stock market rebound and improved performance will trigger sharply higher incentive payouts for some professionals. Johnson Associates surveyed their clients and project an average increase of 40 percent for traders at investment and commercial banks, while predicting a decline of 20 percent for their peers at asset management, alternative investment and insurance firms. The hardest hit, according to the survey, will be private equity and prime brokerage professionals.
Johnson Associates is also predicting an uptick in hiring on Wall Street in 2010. The strengthening investment banking job market may in turn create a few retention challenge for firms that pay out the stingier bonuses in 2009.