NEW YORK – Many Wall Street workers will see their pay stay flat or decline this year, as big banks and money managers continue to cut costs, according to a report on Tuesday by compensation consultancy Johnson Associates.
Those in equities trading and underwriting will be hardest hit, with annual pay packages down 10-15%, Johnson Associates predicted.
Now there is a peculiar dynamic, where pay can fall even when the economy is strong, said Alan Johnson, who runs the consultancy.
Pay is under pressure because of increased competition and automation.
As investors demand more for a lower price, firms have been reducing headcount and squeezing pay.
The only areas where employees may see a pay bump this year are private equity, hedge funds and traditional lending, according to the report.
Those workers could see pay rise 0-5%. Although fewer are bringing home massive paychecks, Wall Street still rewards top performers, Johnson said.