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Wall Street Pay Hits Record $144 Billion

From the Wall Street Journal:

Wall Street Pay: A Record $144 Billion

Financial Overhaul Has Affected Structure but Not Level; Revenue-to-Compensation Ratio Stays Flat

By LIZ RAPPAPORT, AARON LUCCHETTI and STEPHEN GROCER
October 11, 2010 

Pay on Wall Street is on pace to break a record high for a second consecutive year, according to a study conducted by The Wall Street Journal.

About three dozen of the top publicly held securities and investment-services firms—which include banks, investment banks, hedge funds, money-management firms and securities exchanges—are set to pay $144 billion in compensation and benefits this year, a 4% increase from the $139 billion paid out in 2009, according to the survey. Compensation was expected to rise at 26 of the 35 firms

We thought Harry Reid had assured us that the Wall Street joyride was over?

No matter how hard they try, the Democrats just don’t seem to be able to stop these fiends from paying their employees outrageous sums of money.

Overall, Wall Street is expected to pay 32.1% of its revenue to employees, the same as last year, but below the 36% in 2007. Profits, which were depressed by losses in the past two years, have bounced back from the 2008 crisis. But the estimated 2010 profit of $61.3 billion for the firms surveyed still falls about 20% short from the record $82 billion in 2006. Over that same period, compensation across the firms in the survey increased 23%.

"Until focus of these institutions changes from revenue generation to long-term shareholder value, we will see these outrageous pay packages and compensation levels," said Charles Elson, director of the Weinberg Center for Corporate Governance

So all of Mr. Obama’s and the Democrats’ promises of the much heralded Dodd-Frank ‘financial reform’ have come to naught?

What a shock. We had so much hope.

This year, employees have jumped to more lucrative opportunities when firms don’t pay. Senior staff at Goldman Sachs and Credit Suisse Group in London, for example, defected last year when the firms cut their pay in response to a U.K. tax on bonus payments

The hell you say. Can’t these firms chain their employees to their desks?

As proprietary-trading businesses were closed to adhere to new regulations, some traders have abandoned Wall Street to join private-equity firms and hedge funds.

Such nonbank firms like Blackstone Group LP, Och-Ziff Management Group LLC and Fortress Investment Group LLC aren’t as scrutinized in Washington. All three firms’ revenue and compensation are projected to increase

It’s almost as if these evil capitalists find a way around the honest government regulators, no matter how hard they try.

This article was posted by Steve on Tuesday, October 12th, 2010. Comments are currently closed.

3 Responses to “Wall Street Pay Hits Record $144 Billion”

  1. Right of the People says:

    The evil bastards! Maybe Barry will shake his fist at them in anger, that will show them.

  2. proreason says:

    Whew!!

    I was really getting worried about Goldman Sachs executives yachts and private jets..

  3. Petronius says:

    “Senior staff at Goldman Sachs and Credit Suisse Group in London, for example, defected last year when the firms cut their pay in response to a U.K. tax on bonus payments.”

    Our Liberal masters often complain that our industries and jobs are leaving the country. Perhaps instead of complaining about us, they might work harder to make our countries friendlier places for people to live and work.

    As Edmund Burke put it, “To make us love our country, our country ought to be lovely.”


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