Wall Street On Track To Award Record Pay

[Puppycow]

One year after the largest financial crisis since the Great Depression, with unemployment soaring while folks on main street lucky enough to still have jobs take pay cuts, Wall Street is poised to set a new record for compensation, exceeding the previous high in 2007.

Major U.S. banks and securities firms are on pace to pay their employees about $140 billion this year -- a record high that shows compensation is rebounding despite regulatory scrutiny of Wall Street's pay culture.

Workers at 23 top investment banks, hedge funds, asset managers and stock and commodities exchanges can expect to earn even more than they did the peak year of 2007, according to an analysis of securities filings for the first half of 2009 and revenue estimates through year-end by The Wall Street Journal.

Total compensation and benefits at the publicly traded firms analyzed by the Journal are on track to increase 20% from last year's $117 billion -- and to top 2007's $130 billion payout. This year, employees at the companies will earn an estimated $143,400 on average, up almost $2,000 from 2007 levels.

Yep. Everything is great again!
Maybe Michael Moore really is on to something.

 

[Darat]

Come on be fair - last year they hardly got any pay raises so they need to make that up....

 

[Puppycow]

Come on be fair - last year they hardly got any pay raises so they need to make that up....

My heart bleeds.

 

[Puppycow]

Exit, Pursued by a Bear
Private equity firms are trying to cash out of their investments. Uh-oh.

A whole lotta people on Wall Street probably want to lock in profits on what has been a really good year. About time for a correction, no?

 

[TriskettheKid]

Exit, Pursued by a Bear
Private equity firms are trying to cash out of their investments. Uh-oh.

A whole lotta people on Wall Street probably want to lock in profits on what has been a really good year. About time for a correction, no?

Probably not, no.

I mean, is there something wrong with taking a company public?

 

[Puppycow]

Probably not, no.

I mean, is there something wrong with taking a company public?

I hope not too, but there seems to be a history of the stock market getting weak around October because people want to lock in profits for the year. If you're already up 25, 30, 40%, why take a chance?

 

[TriskettheKid]

I hope not too, but there seems to be a history of the stock market getting weak around October because people want to lock in profits for the year. If you're already up 25, 30, 40%, why take a chance?

Some legitimate reasons, I think.

Because of the market for the past few years, it could very well be that these PE firms have held onto these companies longer than they should have, or were unable to take them public previously. By doing the IPO now, they could get rid of a burden on their firm, maybe even make enough capital to pump back more into their portfolio companies, allowing more to be taken public, etc.

Or, it could even give them enough capital to take another company private.

I don't know, but I don't think it's a bad thing. Or rather, not inherently bad.

 

[rwguinn]

One year after the largest financial crisis since the Great Depression, with unemployment soaring while folks on main street lucky enough to still have jobs take pay cuts, Wall Street is poised to set a new record for compensation, exceeding the previous high in 2007.



Yep. Everything is great again!
Maybe Michael Moore really is on to something.

Hmmm.
My contract ended a month ago, so I am on the street.
A year ago, Engineers with my credentials were pulling down US $75-85/hour (no benefits) with a per diem split.
Rates now as "As high as $57 per hour"-no benefits, no PD...
Oh, yeah. Things are better...

 

[Toke]

Come on be fair - last year they hardly got any pay raises so they need to make that up....

Yes, and using last year as the base they have done great this year and deserve it, and more.

(like the wheel)

 

[theprestige]

Hmmm.
My contract ended a month ago, so I am on the street.
A year ago, Engineers with my credentials were pulling down US $75-85/hour (no benefits) with a per diem split.
Rates now as "As high as $57 per hour"-no benefits, no PD...
Oh, yeah. Things are better...

You're looking at it all wrong. Your situation is even worse than you think: You're not an out-of-work engineer, you're an out-of-work Wall Street investment banker.

You're not missing out on $75-85/hour (no benefits), you're missing out on a compensation package totaling in the millions of dollars.

 

[The Don]

Bonuses in London allegedly up 50%.

http://news.bbc.co.uk/1/hi/business/8317395.stm

 

[rwguinn]

You're looking at it all wrong. Your situation is even worse than you think: You're not an out-of-work engineer, you're an out-of-work Wall Street investment banker.

You're not missing out on $75-85/hour (no benefits), you're missing out on a compensation package totaling in the millions of dollars.

Damn!
You're right!
I'm getting screwed out of Million$!