Wall Street is still waiting for business to catch up with its bonuses.
Banks, brokerages and private-equity shops plan to increase compensation by 4% this year, shelling out a record $144 billion, while taking in only 3% more revenue, according to analysis by The Wall Street Journal.
Since 2006, profit at the 35 firms comprising the study has plunged 25%, while compensation has surged 23%. In addressing that chasm, the firms once again trotted out the age-old argument: It takes top dollar to retain top talent. But it doesn't take a quant genius to realize that middle or bottom talent no doubt take home most of the total payout. Finance executives never seem to address that.
There are some firms of note. Those increasing pay while taking in even less:
Bank of America
And those cutting pay while doing more business:
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