Bankers bargaining is an annual tradition on Wall Street. bigger jackpot. This year, they will likely get what they want.
A year and a half after the pandemic, American banking giants have made buffer profits from an economic recovery that strengthened markets for deals and stock trading. This could translate into 30 percent to 35 percent higher bonuses for investment bankers who supply stocks or bonds, according to estimates from Johnson Associates, a Wall Street compensation advisory. It was stated that payments could reach the highest levels since the 2008 financial crisis.
Financiers, stock traders and salespeople advising on mergers and acquisitions can expect increases of 20 percent to 25 percent as financial firms pay to keep top performers from leaving.
“There’s a shortage of staff, so in addition to pay levels, there’s a real demand for talent,” Alan Johnson, managing director of Johnson Associates, said in an interview. “Every client we talk to has a hard time finding recruiters.”
The labor shortage extends far beyond Wall Street into industries where wages are significantly lower. Wages increased especially in the service sector in recent months and more workers going on strike. In finance, the tight market means that high-performing bankers will likely go business shopping and jump ship in the first three months of the year after bonuses hit their accounts.
“When you have a crisis, you usually have a recession in turnover, people are risk-averse, cling to their jobs, squat,” said Mr Johnson. But when we get to the middle of ’21 and ’22, there will be more turnover.”