50% Bigger Bonuses For U.S. Employees In The Financial Sector
Half of the employees of Wall Street hopes that by the end of this year they will be rewarded with bonuses and severance payments higher than those of 2009. Every tenth employee working in a financial company believes the increase will be of least 50%. Major banks and investment firms in the U.S. are prepared to justify those hopes, intending to pay their employees record bonuses.
According to analysts, the workers of the main investment banks, hedge funds, commodity and capital will win, after all, 4% more than in 2009. Compensatory payments is expected to grow in volume 26 of the 35 financial firms on Wall Street. Later this year, the total will reach the bonus single, reaching $ 144 billion. “Wall Street Journal reminds, among others, as in 2009 a record was set in this field.
According to analysts’ forecasts, 29 of the 35 analyzed companies will increase their earnings by 3% in 2010 from $ 433 billion to 448 billion dollars. Of this total, to pay employees, plus bonuses, will spend 32.1%, which corresponds to the percentage in 2009, but 36% lower than in 2007. In contrast, financial companies net profit will amount to $ 61.3 billion, up 20% less than the maximum level of 82 billion dollars recorded in 2006.
Lower earnings, higher bonuses
Be mentioned that since 2006, salaries and bonuses have increased by 23%. Among the companies analyzed included JP Morgan, Bank of America, Citi, Goldman Sachs, Morgan Stanley, Ameritrade, and other NYSE Euronext. According to estimates, Citi, which is controlled at a rate of 12% of the U.S. government will register gains of 4% higher than in 2009, and bonuses will increase by 8%. For Goldman Sachs and Bank of America, experts anticipate a drop in earnings, but their employees are counting on an increase in premiums. Regarding Goldman, revenues will decrease by 13.5% this year from 45.2 billion dollars from 39.1 billion dollars, but the volume of compensation for employees will increase by 3.7%, up to 16 , $ 8 billion.
According to Bloomberg, citing a study by eFinancialCareers.com, half of the over 2,000 workers in commercial and investment banks, hedge funds and of insurance companies surveyed believe their bonuses will increase in 2010. However, 91% of employees on Wall Street are convinced that they will receive bonuses this year.11