Bonuses in the financial industry are likely to fall between 5 and 10 percent this year, according to a new report, the first year since 2011 that compensation is likely to drop.
Private equity and mergers-and-acquisition work are likely to be stronger for finance workers, but most segments of the industry are struggling, the report released Monday morning by the consulting firm Johnson Associates says, the New York Times reports. Morgan Stanley and Goldman Sachs have shown poor financial results this year, and Deutsche Bank has said it will slash 35,000 jobs over the next two years.
“We kept expecting next year will be the year,” said Johnson Associates founder Alan Johnson. “And it hasn’t really happened — and I don’t see it for the next three to five years.” The industry still has some of the highest remuneration levels in the world, with the average securities industry bonus reaching $172,860, according to the New York State comptroller’s office.