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|More or Less: Wall Street Professionals Split on Bonus Expectations|
While personal (34%) and firm performance (33%) are the leading reasons for the anticipated bonus increases, nine percent of respondents indicated changing employers is the primary reason their bonus will increase versus last year – driven largely by front office professionals who’ve switched firms.
“The signs of bonus euphoria may be hard to find, but Wall Street employers will have to deal with professionals who believe they are in contention for fatter paychecks and the inevitable retention issues should their expectations be dashed. Recruitment activity on Wall Street is solid and talented professionals always have options particularly in compliance, risk management, technology and operations,” said
Compensation is frequently the primary retention tool firms utilize. However, the majority of Wall Street professionals (61%) indicate that money, while important, isn’t the most important reason they work in financial services. A little more than a third of financial services professionals (37%) say compensation is the most important reason to work on Wall Street, while just two percent indicate it’s not important at all.
When asked about potential downward influences on bonuses, market conditions top the list of current concerns, followed by the Dodd-Frank Act and voluntary restraint by firms. Likewise, the majority (64%) of financial services professionals aren’t expecting accelerated bonus payments before year-end. This finding is even more pronounced at regulated firms – with 87 percent of bulge-bracket respondents and 84 percent of commercial bank respondents expecting their payouts in 2011.
Significantly more financial services professionals in
And for many, the expected bonus increase will be significant. In the U.K., nearly one in five (17%) of all those surveyed believe their bonus will be over 50 percent higher than last year; and in Hong Kong and Singapore 14-15 percent reckon they will be in line for an increase of over 50 percent. In the
And for banking industry regulators, the eFinancialCareers.com global survey results offer little comfort. Despite the recommendation to limit cash payments to less than 50 percent of a total bonus - regardless of the bonus size - the results suggest this is yet to happen. Of those expecting to receive a bonus who work in regulated areas of the banking industry in the U.S., Singapore and Hong Kong, the average expectation is that over three quarters of their bonus will be paid in cash. In the
About the Survey
The eFinancialCareers Global Bonus Expectations Survey took place in the
Table 1: What do you expect to happen to your bonus this year compared to last year?
Table 2: What is the primary reason you anticipate your bonus will increase versus last year?
Personal Performance 34%
Department Performance 9%
Firm Performance 33%
Changed Positions within Employer 7%
Changed Employers 9%
Pay Structure Changed 4%
Table 3: How important is compensation in your decision to work in the financial services industry?
It’s the most important reason 37%
It’s important, but not the most important reason 61%
Not an important reason 2%
Table 4: Which concerns you most currently about potential downward influence on total financial services compensation?
Market conditions 59%
Voluntary restraint by firms 14%
I have no concerns 8%
Table 5: When do you expect your bonus this year will be paid?
On or before December 31, 2010 26%
Partly in 2010, partly in 2011 10%
In 2011 64%
eFinancialCareers, a Dice Holdings, Inc. service, is the leading global career site network for professionals working in the investment banking, asset management and securities industries. The website provides financial services professionals with job opportunities, job market news and analysis, salary surveys and career advice. Recruiters and employers can post jobs targeting specific sectors within the financial services industry, both buy-side and sell-side, and can search the resume database for highly qualified and specialized professionals. eFinancialCareers has a network of co-branded career sites with industry-leading trade publications and offers local websites in 18 markets and five languages primarily across North America, Europe, the