US bankers set for record pay and bonuses for second year

[What_Goes_Up]

guardian.co.uk/business/2010 … ay-bonuses

US bankers set for record pay and bonuses for second year
Tuesday 12 October 2010
Edward Helmore in New York

Pay and bonuses at US banks and hedge funds are set to rise 4% this year – outpacing the growth in revenues – study finds

US bankers are set for record compensation for a second consecutive year, shattering both the illusion of pay-reform and the expectation that bank bonuses would be tempered while the US economy remains weak.

With third-quarter figures from JP Morgan expected to begin a bumper profit reporting season tomorrow, a study of more than three dozen banks, hedge funds, money-management and securities firms estimates they will pay $144bn (£90bn) in salary and benefits this year, a 4% increase on 2009.

The research, by the Wall Street Journal, found pay was rising faster than revenue, which gained 3% to $433bn, despite a slowdown in stock trading.

And while profits have fallen from their 2007 peak, the percentage directed to compensation has increased by 23%.

“Until the focus of these institutions changes from revenue generation to long-term shareholder value, we will see these outrageous pay packages and compensation levels,” Charles Elson, director of the Weinberg Centre for Corporate Governance, told the WSJ.

…(cont’d)

[shocked]

After the tough year they’ve had who could begrudge them a couple of billion in bonuses.