Pay cuts likely to signal a ‘new normal’ on Street

Jan 19 2013, 01:19 IST
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SummaryIn the past few days, major global banks have taken the axe to pay with unusual zeal. JPMorgan slashed the compensation of CEO Jamie Dimon, one of the world’s top bankers, by half despite record earnings in 2012.

run,” he said.

Goldman’s return on equity for the quarter — a measure of how well the bank turns shareholder funds into profit — was 16.5%, nearly triple its level in the same quarter a year earlier.

There are some sceptics who say it is too early to declare the arrival of a new era when it comes to Wall Street pay. After all, they point out, banks are only taking drastic steps after punishing investors with weak returns for the past few years.

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