Wall Street Bonuses Falling, But Not For Hedge Funders

Aug 15 2011 | 12:54pm ET

Bonuses are expected to tumble precipitously on Wall Street this year—but not for the alternative investments industry or the bankers who serve them.

Compensation consultant Johnson Associates predicted that hedge fund and private equity employees can expect as much as 5% more in their year-end bonus check than last year. Prime brokerage employees can expect the same.

By contrast, fixed-income traders may get as much as 30% less, a stark reversal from Johnson's May prediction, which foresaw increases of between 10% and 15%. Equity traders will face cuts of as much as 15%, the new forecast says.

Johnson blamed the "lack of economic recovery" and "ongoing uncertainty in world markets."

Hedge fund and private equity firm employees, however, won't be alone in having more money to spend this holiday season: Their fellow money-managers will, as well. Bond fund managers may get as much as 10% more while stock managers can expect up to 5% more. On the investment-banking side, mergers and acquisition specialists and underwriters may get 5% to 10% more this year.


In Depth

JOBS Act Propels Real-Estate Crowdfunding Platform

Oct 21 2014 | 2:57am ET

If D.J. Paul were a real estate development, he would be described as “multi-use...

Lifestyle

Balyasny Pays Over $6M For Lakefront House

Oct 22 2014 | 10:29am ET

A venture headed by hedge fund manager Dmitry Balyasny just paid $6.2 million for...

Guest Contributor

Hedge Funds Weather A Data Management Perfect Storm

Oct 22 2014 | 12:28pm ET

From a regulatory standpoint, nearly every development since the crisis has placed...

 

Videos

Editor's Note

    Guidelines for Guest Articles

    Oct 22 2014 | 9:46am ET

    We are always looking for guest articles from hedge fund managers and buy-side firms.

    If you are interested in submitting a contributed piece for possible publication on FINalternatives, please take a look at the specs. Read more…

 

Futures Magazine

October 2014 Cover

Deeply flawed risk benchmark

Most traders agree that proper risk management is the key to successful trading. However, many traders depend on the deeply flawed measure of standard deviation as a benchmark of risk. Here we put it ...

The Alpha Pages

TAP July/August 2014 Cover

The Alpha Pages Interview: Senator Rand Paul

Senator Paul sat down in the debut series of the Alpha Pages Interview to discuss the broken tax code, regulation surrounding Bitcoin, and his plans for the 2016 Presidential election.