Wall Street pay for 2010 is likely to be down nearly across the board, according to traders, executives, and compensation consultants, as the industry rounds out a choppy year in the markets and dealmaking.
Underwriting and deals enjoyed a renaissance in recent months, with successful offerings like the General Motors IPO and a bevy of mergers. Yet total compensation in investment banking is likely to be down between 4 percent and 10 percent relative to last year, according to the Options Group, a New York executive search firm.
In a recently-updated survey of major investment banks and other financial-services firms, the recruiter predicts that in fixed income, where low yields have dominated recent months, pay will fall 9 percent to 16 percent, and that in equities, they’ll drop 20 percent to 26 percent. Within equities, cash and derivatives trading appear to be the hardest-hit areas, according to the survey.