NEW YORK (Reuters) – Many Wall Street workers will see their pay stay flat or decline this year, as big banks and money managers continue to cut costs, according to a report on Tuesday by compensation consultancy Johnson Associates.
Those in equities trading and underwriting will be hardest hit, with annual pay packages down 10-15%, Johnson Associates predicted. Bond traders and traditional asset managers can expect reductions of 0-5%, with dealmakers and private bankers facing flat pay.
Job - Market - Wall - Street - Crisis
The job market has generally tightened on Wall Street since the 2008 financial crisis, when market chaos and recession forced the industry to adjust. But now there is a peculiar dynamic, where pay can fall even when the economy is strong, said Alan Johnson, who runs the consultancy.
“This is kind of an inflection point,” he said. “It used to be, ‘As long as AUM is up and as long as the market is up, you’ll be fine.’ But that’s no longer true.”
AUM - Refers - Assets - Management
AUM refers to assets under management.
Pay is under pressure because of increased competition and automation. As an example, Johnson pointed to index funds that...
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