Compensation Report: Bonuses Amid the Meltdown?
October 22nd, 2008
Those MBAs who were fortunate enough to join investment banks recently and then keep their jobs are no doubt fretting about their bonuses, as compensation has come under the microscope amid the financial meltdown. Well, according to Forbes (“Yes, There Will Be Bonuses This Year”) it will not be all doom and gloom on Wall Street this year. Even though compensation consultants are expecting a 30-50% drop in bonus payouts, this number needs to be understood in context, as these firms have dramatically reduced their headcount. According to Forbes, executives at the banks can expect to see a reduction in their bonuses, but star performers will still earn substantial bonuses. Further, compensation consultants are expecting to see cash compensation drop, but be replaced by deferred stock awards to avoid some scrutiny. Maybe, just maybe, now might actually be a great time to take a risk and hit the street, if there is a job to be had of course. Those who joined Wall Street firms in 2003, amid the tech bust and in the aftermath of Enron, World Com and more, had quite the ride…
Posted in Blogroll, Compensation Report
