Compensation Report: Banking Salaries Bounce Back

A front page story in the Sunday New York Times (“After an off year, salaries are bouncing back”) may have given hope to aspiring MBAs. It seems that banking bonuses are expected to bounce back to 2007 peaks, after an off 2008, made possible by the reserves major banks are setting aside. While absolute bonus reserves are lower than they have been in the past, headcount is also lower. So, on average, many investment bankers can still expect to see the bonuses that have been the inspiration for so many to pursue MBAs and head off to Wall Street. Of course, when the bonuses are in fact doled out, there could be significant criticism and a retreat. Only time will tell…