Bonus Disclosures Risk Backfiring by Boosting Pay Demands

Forcing Wall Street brokers to disclose bonuses they receive to switch firms is likely to backfire on the industry as workers use the information to seek higher pay, recruiters and former brokers said.

“It’s like knowing the car dealer’s price list,” said Marc Dobin, founder of Jupiter, Florida-based Dobin Law Group PA, who represents brokers, brokerage firms and investors on employment disputes. “If a broker is looking to leave a wirehouse for a choice of two competitors and has access to this knowledge, it enables the broker to negotiate harder.”