It’s no secret that investment bankers are well-compensated, mostly through year-end bonuses, especially during bull markets. But can they still count on those big bonuses this year, in the midst of the financial crisis and sharp market declines?
On CBS’s The Early Show Wednesday (2008-11-12) correspondent Priya David spoke with several compensation consultants who said that, even in this economy, firms are worried that, if they don’t pay out the bonuses, they’ll lose their top talent — people they want to keep around for when the economy improves.
She reported that lawmakers and taxpayers alike are concerned about where the money for those bonuses will come from. For Wall Street workers still employed, there could be a hefty bonus in their checks next month. According to a report from financial news agency Bloomberg, Goldman Sachs, for example, has set aside $6.8 billion for bonuses, and Morgan Stanley, $6.4 billion.
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