13 October 2010
US Bankers Still Receiving Big Payouts
The myth that bankers are no longer receiving enormous payouts has well and truly been shattered thanks to new research founded by the Wall Street Journal.
The figures which reveal the banking giant JP Morgan salary pay-outs, reveal US bankers are getting record breaking compensation for the second year in a row. In what seems almost inconceivable, the research that studies three dozen banks, hedge funds and money-management firms, shows that these companies will pay out £90 billion in salary and benefits this year alone.
The data flies in the face of new measures that were set to put a cap on bonuses and salaries and it also reveals that top bankers have not suffered in the slightest despite the state of the US economy and its recovery. Far from being negatively affected by the US recovery, salaries have gone up by 4% since this time last year, third-quarter figures reveal.
Charles Elson, director of the Weinberg Centre for Corporate Governance told the Wall Street Journal,
“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.”
The research also shows that Goldman and Sachs is expected to raise compensation pay to $16.8 billion which is a rise of 3.7% despite the fact that revenue is set to fall to $39.1 billion.