Someone called the “paymaster,” the person who sets salaries from inside an unnamed Wall Street bank, spoke to the Wall Street Journal on the condition of anonymity.He explains how much bankers really make.
These are the numbers for mid-career level bankers (people in their 30s or 40s).
The pay breaks down like this:
- Precrisis: About $2.2 million a year. ($200,000 base, $2 million bonus, about 60% of which was paid in cash).
- After taxes: $700,000 cash take home. $1.4 million total.
- Postcrisis: $1.6 million a year. ($400,000 base, $1.2 million bonus, about 60% to 70% is in the form of deferred compensation, largely in company stock). That’s about
- After taxes: $380,000 cash.
Almost half a million is nothing to complain about, but you see why they’re annoyed. Those people making $400,000 are just barely in the highest tax bracket, right in the spot where it’s the hardest to swallow paying the government. And they’re salary got cut in half.
And you thought bankers were making a lot. Nope! According to the WSJ,
The once-vaunted “$10 million man” is the rarest of breeds. Today, a $5 million salary puts a banker at the 90th percentile for pay, according to the paymaster’s figures.
At a hedge fund, you can make more than that by age 27.