Wall Street CEOs including Lloyd Blankfein and Jamie Dimon are avoiding a squeeze on pay that helped their firms lower costs in 2013.
Goldman Sachs, JPMorgan Chase and Morgan Stanley shrank pay pools for their traders and bankers by more than 2% last year. For those firms’ leaders, the story was different: Goldman Sachs boosted Blankfein’s bonus 11%, while JPMorgan increased Dimon’s 85%. At Morgan Stanley, James Gorman’s equity award almost doubled.
Bloomberg News reports that the largest Wall Street banks set aside a smaller portion of revenue for employee pay to cut costs amid sluggish investment-banking and trading revenue.
'Given how compensation has fallen on Wall Street, it’s potentially viewable as a disconnect', said Richard Lipstein, Managing Director of New York-based search firm Gilbert Tweed International. Still, 'you can make a justification that they earned their compensation when you look at the stock performance'.
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