Bloomberg Businessweek: Goldman’s Pay Pool Shrinks Fastest as Traders’ Fortunes Dwindle
Wall Street traders, who typically receive the fattest year-end bonuses among bank employees, are poised to suffer the biggest pay cuts as revenue at their divisions dropped an average of 12 percent so far this year.
Not everyone sees the decline in traders’ pay this year as a symptom of a long-term change in compensation. “Assuming we’re headed back into economic growth phase, we’ll look back at this and it will be a total aberration,” said Joseph Sorrentino, managing director at compensation consultant Steven Hall & Partners, LLC in New York. “I do get the sense that once we have a rebound that these positions are going to return to their previous levels.”