Earlier we posted that despite the news out of JPMorgan (JPM) and Citigroup (C) about they were changing their compensation, no real changes could be made, since the fundamental business models remained the same.
But perhaps we were being overdramatic. Underneath the headlines and all the pomp and circumstance about bonuses and the “comp czar,” changes are being made.
eFinancialCareers did a survey and found that 46% of working financial professionals report a change in their compensation structure.
The most commonly cited changes were:
1. Base Salary has been adjusted for smaller performance based compensation
2. I’m no longer bonus-eligible
3. Bonus will now be adjusted for risk and capital costs
4. (Tie) 2009 Bonus has been pre-negotiated
4. (Tie) Bonus will now be “vested” over a period of time
5. Bonus will now be in the form of “deferred or equity-related components”
The data also shows that that older, more veteran workers have disproportionatelly had seen changes to their compensation, which makes sense given that their more important roles would likely have involved more wild swings in the past.
We’ll hold off on making any grand pronouncements for now about what this means, in part because this is limited data and we don’t have a good sense for the significance of these changes.
Business Insider Emails & Alerts
Site highlights each day to your inbox.