Wall Street Bonuses Set to Plunge, Says Report

November 7, 2008 · By Kalyani Mukherjee Filed Under Economy Tagged as: executive bonuses, Wall Street firms

The days of dizzying Wall Street salaries seem to coming to an end in the wake of the recent market meltdown which has left several finance giants either bankrupt or seeking the refuge of federal bail out.

A study conducted by the consulting firm Johnson Associates reports that bonus for Wall Street executives which had soared to record peaks in recent years are set to drop by 20 to 35 percent across the industry. Bonuses for the top managerial level are in fact estimated to plunge as much as by 70 percent. Another report released in the New York Assembly on Wednesday said that Wall Street bonuses could come down by a whopping 41.3 percent next year.

The Johnson study is based on a survey of banks and money management forms and also takes into account compensation figures disclosed in corporate filings. The study is conducted every year by the private consulting firm but this year it will be especially scrutinized as pressure mounts from political quarters on the finance industry to pare down salaries and bonuses.

The Attorney General of New York Andrew M Cuomo said in an interview on Wednesday that even if executive bonuses are slashed by 70 percent, it might not be enough to cope with the extent of losses which have necessitated a $700 billion federal bail out plan.

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