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    Friday, May 10, 2024

    Study: 14 percent of bankers got no bonus last year

    New York - The proportion of investment bankers who got no bonuses last year more than doubled to about 14 percent, a poll by executive-search firm Options Group shows.

    The percentage of employees who weren't given an annual award rose from 6 percent in 2010, a report yesterday from the New York-based company said. Getting no bonus, or being "blanked" by your employer, isn't the smear it once was because base salaries increased after the 2008 financial crisis, said Michael Karp, managing partner of Options Group.

    "People aren't complaining about it as much as they would have if this were 2007," Karp said in a telephone interview. "As compensation shifted, the mentality of people has become more limber. Also, these are times you can't just quit and expect two offers right away."

    Wall Street firms are cutting costs and vowing to claw back some payments as they succumb to revenue and regulatory pressures. Goldman Sachs, JPMorgan Chase and Bank of America trimmed pay and reduced positions this year. More cuts may come as the European debt crisis dims the industry's prospects, Karp said.

    Financial firms in Britain have also been under pressure from regulators and governments to cut pay due to public anger about taxpayer assistance to banks, including Royal Bank of Scotland Group and Lloyds Banking Group.

    RBS Chief Executive Officer Stephen Hester this year waived his 963,000-pound ($1.49 million) bonus after the opposition Labour Party said it would ask Parliament to vote on the award.

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