Big Pay Packages Return to Wall Street Compensation on Track to Soar as Earnings Recover From Crisis-’Like It’s 2007 Again’
I’m not sure what to think of this. Its too early to start talking about end of the year Wall St compensation,but I am tempted to say ” told you so”. I guess it’s time to start playing musical chairs again.
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Introduction (Via WSJ)
Business is back on Wall Street. If the good times continue to roll, lofty pay packages may be set for a comeback as well. Based on analysts’ earnings forecasts for 2009, Goldman Sachs Group Inc. is on track to pay out as much as $20 billion this year, or about $700,000 per employee. That would be nearly double the firm’s $363,000 average last year, and slightly higher than the $661,000 for the average Goldman employee in fiscal 2007, according to analyst estimates reviewed by The Wall Street Journal.
Additional Excerpts (Via WSJ)
Still, the comeback in compensation so far this year shows how hard it is for Wall Street to break its old habits. Repaying last year’s capital infusions from the government freed Goldman, Morgan Stanley and other big financial firms from curbs on compensation. Meanwhile, non-U.S. banks that didn’t get Troubled Asset Relief Program funds are becoming increasingly aggressive.
