Wall Streeters Bullish On 2009 Payouts Finds eFinancialCareers.com Survey

October 6, 2009 9:00 AM EDT

NEW YORK, Oct. 6 /PRNewswire/ -- One year after the market collapse that turned the spotlight on compensation practices, 83 percent of Wall Street professionals anticipate receiving bonuses this year, according to a recent survey by eFinancialCareers.com, the leading career site for the finance community. Bailouts, bankruptcies and threats of regulation aside, more than one-third of finance professionals expect even fatter payouts in 2009 than they received last year.

Even though more than half (52%) of financial services professionals noted their firms have revised bonus policies, there is a broad consensus that attitudes toward risk haven't changed. Among financial professionals who take risk, 60 percent said that current bonus policies have no impact on risk taking. Meanwhile, 28 percent indicated constraint and 12 percent are emboldened by their firm's bonus policy to take additional risk.

While this finding may rile regulators who have concluded that compensation arrangements often created incentives for excessive risk-taking with insufficient regard to longer-term risks, there is a sharp divergence by type of firm implementing pay structure changes. In fact, finance professionals working at bulge-bracket or commercial banks were more likely to have a new pay structure, while alternative asset management and boutique bank employees were the least likely.

"Bonuses will continue to have a strong impact on Wall Street culture and career choices," said John Benson, founder and CEO of eFinancialCareers.com. "The successful re-invention of the financial services industry will require a delicate balance of solid policies and management supported by skilled talent that receives the proper recognition."

The majority or 57 percent of financial services professionals expect their year-end bonuses to be flat or higher than last year's payout. Among those looking forward to an increase, 33 percent believe it will be a result of last year's abnormally low bonuses due to the credit crisis. However, a relatively even match of 24 percent and 23 percent attribute the rise to personal performance and firm performance, respectively.

In contrast, of the quarter of respondents predicting a smaller bonus, 54 percent attribute this to firm performance, while 20 percent say a change in pay structure is the primary reason.

Survey Methodology

The eFinancialCareers.com Bonus Survey was administered online September 15 to September 29, 2009 with 1,074 financial services professionals responding. Respondents had to indicate that they were currently employed to be included in the survey results, 53 percent worked in the front-office; 28 percent in the middle office and 19 percent in the back office.

Table 1: What do you expect to happen to your bonus this year compared to last year?

                   71%+ more       8%
                 51-70% more       3%
                 31-50% more       5%
                 11-30% more       9%
                  0-10% more      11%
                   No Change      21%
                  0-10% less       5%
                 11-30% less       8%
                 31-50% less       8%
                 51-70% less       3%
                 71-99% less       2%
        I will have no bonus      17%

Table 2: Has your firm revised their bonus policy in the last year?

        Yes      52%
        No       48%

Table 3: How does the current bonus policy impact your appetite for risk taking?

        Strengthen        12%
        Weaken            28%
        Has No Impact     60%

Table 4: What is the primary reason you anticipate your bonus will increase versus last year?

        Personal Performance                                   24%
        Department Performance                                  6%
        Firm Performance                                       23%
        Changed Positions within Employer                       4%
        Changed Employers                                       9%
        2008 Bonus was Abnormally Low due to Credit Crisis     33%
        Other                                                   1%

Table 5: What is the primary reason you anticipate your bonus will decrease versus last year?

        Personal Performance                                    3%
        Department Performance                                  5%
        Firm Performance                                       54%
        Changed Positions within Employer                       1%
        Changed Employers                                       8%
        Pay Structure Changed                                  20%
        Other                                                   9%

About eFinancialCareers

eFinancialCareers, a Dice Holdings, Inc. company, is the leading global career site network for professionals working in the investment banking, asset management and securities industries. The website provides financial services professionals with job opportunities, job market news and analysis, salary surveys and career advice. Recruiters and employers can post jobs targeting specific sectors within the financial services industry, both buy-side and sell-side, and can search the resume database for highly qualified and specialized professionals. eFinancialCareers has a network of co-branded career sites with industry-leading trade publications and offers local websites in 18 markets and five languages primarily across North America, Europe, the Middle East and Asia-Pacific. www.eFinancialCareers.com

    Media Contacts:
    Jennifer Bewley
    212-448-8288
    efcmedia@efinancialcareers.com

    Jonathan Blank
    212-508-9615
    jblank@makovsky.com

SOURCE eFinancialCareers

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