Wall Street Bonuses Boosted by Bank Stock Rally

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Jan. 2 (Bloomberg) -- Bloomberg's Laura Marcinek reports on the banking industry and Wall Street bonuses on Bloomberg Television's "In The Loop." (Source: Bloomberg)

And deferred stock.

I am joined by laura.

What does the stock surge -- banks really outperformed as a group, the s&p 500 last year.

What does this mean to the average banker?

They are pretty happy today if they got a deferred stock bonus three years or five years ago.

A lot more value.

But three years or five years ago, they were probably annoyed.

Now it seems if they could hang in there, it is a pretty good deal.

And a time you cannot get cash right away, you might be a little cranky.

As one of our consultants said.

If you sat on it, it is worth 30% more.

In morgan stanley's case, 60% more.

Morgan stanley was up 60%. all of this came a little bit as a theme of the aftermath from the credit crisis, bankers are making too much and have high bonuses.

They have to have skin in the game.

So these plants came into effect.

Regulators were pushing banks to pay with stocks, they want bankers to have skin in the game and dial back risk taking.

When you have more stock, there is incentive to do the smart thing.

This is your average rank and file, still part of the 1%. what about the business leaders, goldman sachs, lloyd blankfein, jamie dimon, any other page 6 names?

Lloyd blankfein, 62% of his pay package for 2012 was restricted stock.

As shares increased, his package is up $3.4 million.

With jamie dimon, almost all his pay was in stocks, $11.5 million pay package, $10 million in restricted stock.

You show that the price index for the banks, the s&p 500 index, both outperforming the s&p 500. some analysts say if you think this year is the same as last year, you are mistaken.

What does this mean for pay?

Our banks going to be paying more in cash?

We have seen a couple banks revert back to cash.

One of our pay consultants says a lot of bankers are still sitting on value.

Once we see an uptick in short-term interest rates, that to be a boon to read it.

There is room to go for bankers to sit on value.

Thank you, laura on anchor -- banker pay.

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