It’s no secret that business has slowed on Wall Street. Last Friday, analysts from Wells Fargo, Bernstein, Ticonderoga, and Meredith Whitney all slashed their estimates for the big investment banks.
And when business slows, so does pay.
And now we’re starting to get a sense of how banker pay will be affected. The Wall Street Journal‘s Liz Rappaport and Colin Barr report:
At Goldman Sachs Group Inc., many of the roughly 400 partners can expect to see their 2011 pay cut at least in half from 2010, according to people familiar with the situation. Pay for some employees in the New York company’s fixed-income trading business will shrink by 60%, with some workers getting no bonus, these people said.
Morgan Stanley is expected to shrink bonuses for some investment bankers and traders by 30% to 40% from 2010, said people familiar with the matter.