Wall Street Bonuses Cut

Banks try to tamp down expectations as they rein in compensation
A man looks up towards the New York Stock Exchange as he returns to work on Wall Street Photograph by Timothy A. Clary/AFP via Getty Images

Cue the violins and grab your handkerchiefs: Wall Street is facing another year of lackluster lucre. Almost 20 percent of financial-services employees around the world won’t get yearend bonuses, according to Options Group, an executive-search company that advises banks on pay. Those who do collect bonuses may see payouts unchanged from last year or increased 10 percent or less, compensation consultant Johnson Associates estimates. Executives “won’t have to pay up because they’re saying, ‘Where are these guys going to go?’ ” says Michael Karp, chief executive officer of Options Group. “We’re in an environment where a lot of people are just happy to have a job.”

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