After Off Year, Wall Street Pay Is Bouncing Back

[w¡n9Nµ7 §£@¥€r 123]

Workers at the largest financial institutions are on track to earn as much money this year as they did before the financial crisis began, because of the strong start of the year for bank profits.

...

Six of the biggest banks set aside over $36 billion in the first quarter to pay their employees, according to a review of financial statements.

If that pace continues all year, the money set aside for compensation suggests that workers at many banks will see their pay — much of it in bonuses — recover from the lows of last year.

Sandy Gross, managing partner of Pinetum Partners, a financial recruiting firm [said], “Wall Street is being realistic. You have to retain your human capital.”

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Historically, investment banks have paid workers about 50 cents for every dollar of revenue.

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Wall Street, of course, has a long history of high wages. Not all that long ago, most investment banks were private partnerships, and the workers were also typically the owners. Even when those firms began listing their shares on public stock exchanges, a standard was set in which half of their revenue was paid out to workers.

Their argument is that such lofty pay retains the best employees, who help earn more money, ultimately benefiting shareholders. The set-asides in the first quarter for pay can also help raise morale within the banks.

http://www.nytimes.com/2009/04/26/business/26pay.html

[Bobby+Umit 161]

yay?

must be nice to fail in your job, get government money to keep the company running, and then pay yourself bonuses with the great job your doing...

wish i was a banker...

[I AM NOT THAT GUY 5,715]

I will start believing that when the DOW moves back into the teen thousands again.

[spookyturtle 9,466]

I will start believing that when the DOW moves back into the teen thousands again.

It shouldn't have been that high in the first place, all smoke and mirrors. It's correcting itself now.