It certainly has been a chaotic year for finance professionals, many of whom have been forced to work from home or, for some, work from the Hamptons. As early as May, we outlined how Wall Street bonuses for 2020 were expected to slump. With 49 days left in the year, New York consulting firm Johnson Associates confirmed in a new report that year-end bonus payments for Wall Street would tumble.
Johnson Associates said third-quarter compensation analysis shows overall year-end incentives, which include cash bonuses and equity awards, will decline on the year, marking the second consecutive year of smaller awards.
Retail and commercial bankers are expected to be the hardest hit, with year-end incentive payments set to plunge by at least 25% to 30% compared with 2019 figures. Investment banking advisors were the next hardest hit, with their bonuses expected to decline by around 15% to 20% compared with last year. Bonuses for asset management, hedge funds, and private equity folks are expected to be slightly down, in the range between 5% to 10%.