Bonus season is upon us, and now we have our first inkling of how it’s going to go for traders. It’s not good.
Citigroup is cutting bonuses for fixed-income and equity traders anywhere between 5%-10% compared to last year, the Wall Street Journal reported Friday. The cut comes after a poor performance year for traders, with Citi’s trading revenue down 9%.
According to the WSJ article, Citi co-president James Forsee announced on Wednesday that the company’s December revenue was worse than they’d previously thought. Bloomberg reported mid-December that Citi had originally planned to keep the bonus pool the same as last year’s.
Citi’s traders aren’t the only ones in trouble. A study from Johnson Associates predicted that trader bonuses would slide 10% in 2015.
In contrast, Citi’s bankers should see a 2%-5 % increase in their bonuses this year, Bloomberg reported.
Let the banker vs. trader smack talk begin…