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.


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Chicago-based independent futures brokerage and clearing firm R.J. O’Brien & Associates (RJO) has hired industry veteran Daniel Staniford as Executive Director, responsible for the firm’s institutional business development in New York and London.

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