Investment Bankers’ Takeaway From Earnings: Paycheck Will Shrink
- Investment-banking slump will dent this year’s compensation
- Trading, net interest income were second-quarter bright spots
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The underwriting and merger slump is spelling bad news for bankers’ pay.
Goldman Sachs Group Inc. and the investment-banking and trading operations at JPMorgan Chase & Co. and Morgan Stanley set aside $4.8 billion less for compensation in the first six months of 2022 compared with a year earlier, a sign that plummeting investment-banking fees will translate into smaller paychecks by the end of the year. Goldman went even further, vowing to slow hiring and reinstate the annual reviews it uses to fire its worst performers.