Bonus shakeup on Wall Street
This bonus season, investment banks are doling out golden handcuffs. Fortune's Katie Benner reports.
(Fortune Magazine) -- Despite the recent string of high-profile blowups, top investment banks still plan on doling out bonuses this year - albeit in a slightly reshuffled hierarchy.
Winners like commodities and equity derivatives traders can expect 10% to 15% above last year's figures, while losers (think anyone who plied mortgage-backed securities) could see their take shrink by up to 60%.
Either way, bonus pay this year is going to come with a hitch: more stocks, less cash. The bigger the bonus, the more of it will be given in equity, say compensation experts at Armstrong International.
In fact, it's Goldman's pool - which accounts for an estimated $20 billion of the top five banks' $36 billion - that Wall Streeters have to thank for their bonuses; what Goldman does others have to follow or risk losing talent.
But will stock shackles be strong enough? With Goldman's pool nearly twice as big as Jamaica's GDP, $1 million in Citi (Charts, Fortune 500) stock might seem like cold comfort compared with warmer climes elsewhere.