Bonuses, total pay average falls in 2012


A Johnson Associates survey released Tuesday shows that when it comes to Wall Street pay, "it has been a slow recovery, just like the economy. Following a year when year-end incentives declined by as much as 30 percent, the fact that many firms are able to keep this year's bonuses flat or slightly larger is notable," notes DealBook

Investment bankers will likely fare about the same as last year. Commercial bankers and asset management employees will be in slightly better position to boost their pay. The same goes for employees in hedge fund and private equity fund units.

The big winners will likely be in FICC, led by fixed-income traders, who suffered some of the biggest declines in 2011. They will likely see pay increases of up to 20 percent, according to the survey, which has become closely watched in the industry. As for the very top line, the total pay including all incentives and salaries will likely be about the same.

All in all, this is about what we would expect given the ups and downs 2012. What's more, pay these days will come with a lot more conditions than a few years ago. Much of it will be deferred, and less of it will come in raw cash. The big question for many is when the industry will get back to the high pay days of 2006 and 2007.

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