KEY POINTS:
On Wall St, the rich are about to get even richer.
Investment bankers and many traders may see bonuses rise 15 per cent from elevated 2006 levels, as profitability grows from international operations, proprietary trading and derivatives, according to a study released yesterday by Johnson Associates, a prominent compensation consultant in New York.
Incentive pay on Wall St for workers in the private equity sphere may rise 20 per cent or more, the study said, as low borrowing costs fuel record buyout activity.
Goldman Sachs in April closed a US$20 billion ($27.5 billion) fund, while Blackstone Group, which is preparing to go public, said it had raised US$19.6 billion for its latest fund.
Not all financial services workers will benefit equally.
Retail banking employees may see incentive pay unchanged to just 5 per cent, the study said, as rising defaults and the US housing slowdown crimp profit.
Bonuses for securities industry employees were projected last year to have risen 17 per cent to a record US$23.9 billion, according to a December estimate by former New York State Comptroller Alan Hevesi.
- REUTERS
