Big Take How Much Is a Wall Street Bonus Really Worth?
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Feb 7, 2025 Laura Noonan, a global finance reporter for Bloomberg, dives into the intricacies of Wall Street bonus season. She discusses how the bonuses promised often differ from what employees actually receive, highlighting the complexities of cash versus stock payments. Laura also sheds light on how post-financial crisis changes have influenced banker incentives and retention. She examines the evolving view of bonuses from rewards to perceived entitlements, while emphasizing the psychological impact and financial reliance they create for professionals in the sector.
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Wall Street Bonus Structure
- Wall Street bonuses are not always paid fully in cash.
- They often involve shares that can fluctuate in value over time.
Bonus Value Comparison
- A $100,000 bonus at Deutsche Bank in 2018 could have decreased to $46,628.
- A similar bonus at JP Morgan could have increased to about $113,000.
Understanding Bonus Payouts
- Understand that bonus payouts are tied to company stock performance.
- This aligns bankers' pay with long-term outcomes.