Don't miss

Replay


LATEST SHOWS

BUSINESS DAILY

Chinese textile wholesalers open Marseille site

Read more

IN THE PRESS

Meet Annegret Kramp-Karrenbauer: Angela Merkel's 'mini-me'

Read more

IN THE PRESS

Major French student union rocked by sexual assault claims

Read more

THE INTERVIEW

Photographer Pete Souza shares his ‘portrait’ of Obama

Read more

EYE ON AFRICA

Zuma ally Atul Gupta challenges asset freeze

Read more

MEDIAWATCH

Gun control continues to trend on US social media

Read more

THE DEBATE

Trump, guns and school shootings: Can students help change gun control laws?

Read more

FOCUS

What's behind Germany's steep drop in juvenile crime?

Read more

ENCORE!

Music show: Duck Duck Grey Duck, Femi Kuti, Starchild & the New Romantic

Read more

Business

Wall Street to distribute record compensation

Text by News Wires

Latest update : 2010-10-12

According to the Wall Street Journal, a record 144 billion dollars in compensation and benefits will be paid out by Wall Street this year compared to 139 billion dollars in 2009, indicating that the financial world is getting back on its feet.

AFP - Financial institutions on Wall Street are preparing to pay a record 144 billion dollars in compensation and benefits, according to a study published Tuesday in the Wall Street Journal.
  
The payout, covering bonuses, premiums and stock options for the firm's executives and employees, is a four-percent raise over the previous record 139 billion dollars that was handed over in 2009, said the financial daily.
  
The study, which covers 35 Wall Street firms -- including banks, investment banks, hedge funds and money managing groups -- found that 29 of the institutions were also expected to see revenue rise by three percent, from 433 to 448 billion dollars.
  
The 2010 profit for the firms of some 61 billion dollars is still a 20 percent decline on the 82 billion dollars in 2006 -- despite in that time compensation at the institutions soared 23 percent, according to the Journal.
  
Wall Street banks and funds have already come under withering criticism for their actions during the 2008 financial crisis and faced the fury of the US public for paying out huge bonuses even though some were propped up by taxpayer funds to keep afloat.
  
In June US authorities announced guidelines aimed at countering pay and bonus practices blamed for the excessive risk taking that fueled the global financial crisis.
  
The rules, however, did not prohibit any specific forms of payment for incentive compensation or establish mandatory compensation levels or caps.
 

Date created : 2010-10-12

COMMENT(S)