Thursday, October 30, 2008
We are DOOMED without the banker bonuses
The CEBR estimates bonuses in London will fall 60 per cent this year, while New York State says a 50 per cent drop is likely. The mix between shares and cash is also set to change. “There will be fewer people earning the really big money,” says Nick Studer from Oliver Wyman, a consultancy. Moreover, many of the investment banks that paid the biggest bonuses are now grafted more tightly on to retail banks, where compensation tends to be lower. New York and London are forecast to shed nearly 100,000 banking-related jobs by the end of 2009 – and banks that survive are unlikely to return to this decade’s dizzying profit levels any time soon. But even those who believe change is in the air wonder how long the restraint will last.