Wall Street bonuses rise 8% for 2012 but industry warns of looming layoffs

[xchrom]

http://www.guardian.co.uk/business/2013/feb/26/wall-street-bonuses-rise-layoffs


The average cash bonus for a worker in the New York securities industry was about $121,900 last year Photograph: Richard Drew/AP


Wall Street bonuses totalled $20bn in 2012 as the financial industry's profits tripled in a year, despite layoffs and dire predictions for the future.

As public outrage over high Wall Street pay subsides, the securities industry is increasing its payout, according to a report released on Tuesday by New York state comptroller Thomas DiNapoli, whose office analyzes bonus data based on taxes paid to New York city and state.

DiNapoli said bonuses rose 8%, which is in line with most predictions of compensation consultants. The average cash bonus for a worker in the New York securities industry was about $121,900 last year, according to DiNapoli.

This year, the securities industry tripled its profit to $24bn from $7.7bn, according to DiNapoli's survey, which covers firms that are members of the New York Stock Exchange. This is not a perfect measure, since many real estate and investing firms do not keep a seat on the New York Stock Exchange.

[badtoworse]

1. If profits tripled, I would expect bonuses to rise.

That's how it works in most businesses.

[reformist2]

2. I expect many of the laid off will change their minds about the 1%.

[htuttle]

3. They'll probably realize that they're not actually a part of it

...as so many in that industry are fond of believing.

[Tom Rinaldo]

4. I'm not so sure

Depends on who is being laid off. If they are people who were riding the gravy train but just got kicked off, probably they believe they can someday catch another one. If they were making solid 6 figure incomes before getting laid off most of them will still identify with the interests of the 1% who had been giving them their delux meal tickets. Maybe after unemployment runs out and no one offers them a new job eaning mroe than 30K, maybe then. Maybe not even then.

[reformist2]

5. True. But some will turn against their old masters, big time.

And converts to the new religion can be some of the most damaging to the old guard. Because they understand both sides all too well.

[Tom Rinaldo]

6. That's true too

I agree some will turn. Probably only a minority will but as you said, those that do won't be enemies the old guard will be glad to have made.

[badtoworse]

7. If it happens at all, it will be a very small minority

Only a moron would turn on his former company / industry if there were layoffs. They will likely get generous severance packages and former employers are valuable as references and potential sources of job opportunities (think networking).

[reformist2]

8. Most in the financial industry don't get paid as well as you think.

Better than the average American, sure - but not that much better.

[badtoworse]

9. Do you work in the financial services industry?

I do and have my own view about this. In my experience, people rely heavily on their network of contacts and will do nothing to damage it. In my own case, my last four jobs came from my network, not from postings or recruiters.

[reformist2]

10. No, but I know many who did. And when you're too old, you're done.

I get that a lot of people don't want to burn bridges, but once they realize their goose is cooked, they'll turn. And they'll turn hard.