Wall Street compensation and bonus pay taking a beating
Equities traders have the worst forecast when it comes to pay.
Wall Streeters may have a little less dough in their bonus payments this year and technology is to blame.
Equities traders in the U.S. have one of the worst forecasts — their compensation is expected to dip 9.5 percent overall. However, most bankers will just see their compensation go "modestly down," according to a report by talent acquisition and development firm Options Group.
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"Technology is a big disruptor across the board over the past five years, three years," Options Group CEO Mike Karp told FOX Business Monday. "Tech has really affected how our world looks in financial services. Going forward it will be more at the forefront. ... We've seen in the last few years candidates are changing. Traders across the board need to understand basics of what tech is."
Worldwide, Options Group forecasts the following average year-over-year changes in compensation: fixed income, credit, and commodities down by 1.1 percent, investment banking down by 1.8 percent and private wealth management down by 0.5 percent.
Compensation is usually paid out in early 2020 for the prior 2019 year.
Karp explained why the forecast for equities was not as concerning as it might appear since it's following a handful of "blockbuster" years.
"Equities had a huge run over the last five years in terms of where the compensation was. ... Being down 5 or 10 percent not that huge of a drop coming from the highs," Karp said.
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(AP Photo/Mark Lennihan, File)
The predictions come as President Trump touts the U.S. economy and uses it as a selling point for his re-election.
"The best Economy ever!" Trump wrote on Twitter on Monday.
The report is based on data available between Jan. 1 and Nov. 15, 2019.
U.S stocks are looking to wrap what is already a record year for the Dow Jones Industrial Average, Nasdaq Composite and S&P 500.