I've never gotten a signing bonus. In my 20 years of work since graduating from college, I've been hired for seven full-time positions and it never really occurred to me to ask for one. Usually I was happy to get the position -- a new challenge! -- and a salary increase.So, it grated a bit when l read about bankers at the defunct Lehman getting signing bonuses to stay at firms that acquired their divisions in bankruptcy proceedings. The Financial Times reported that Nomura, which bought Lehman's European and Asian divisions, gave bankers cash equal to last year's bonus if they agreed to stay at Nomura for a year, for example. The article covered a "scramble for talent" that took place when all those Lehman execs were suddenly available for hire.
Bank of America is also reportedly promising Merrill Lynch brokers a bonus as big as as 100% of the revenue they generate to stay after the deal is closed -- even though the sale was done to avert Merrill's demise.
Apparently even undergraduates are still getting signing bonuses when hired at investment banks, according to web site Banker's Ball. The average salary posted in the comments is about $60,000 with a $10,000 signing bonus (plus a target $30,000 or $40,000 year-end bonus depending on the position).
Given massive firings on Wall Street, are those payouts really necessary? None other than Goldman Sachs said on Oct. 23 that it will be laying off 10% of its global workforce, or about 3,000 employees. Did Nomura really have to worry that top talent would walk? Or was it just good for morale to keep the cash flowing? Can the firms really claim a need to pay such large bonuses to keep talent in a year where their bad decisions have nearly brought about the collapse of the global financial system?
Several recent articles, including on BloggingStocks, have pointed out that bankers and traders will still get bonuses this year that would seem lavish to most other industries (even if they are smaller than they are used to. Bloomberg reports that Morgan Stanley (NYSE: MS), Merrill Lynch & Co. (NYSE: MER) and Goldman Sachs (NYSE: GS) have each set aside around $6.5 billion for bonuses. Time reports that Wall Street bonuses would have been much lower if it weren't for the government bailout, even though that legislation restricts salaries of the top five execs at participating firms.
Signing bonuses are just another flavor of bonus bonanza that those who work on Wall Street have come to expect. I know that so I shouldn't be surprised they are still available.
Wall Street pays less and it pays fewer people. But it still pays and pays.











Reader Comments (Page 1 of 1)
10-28-2008 @ 9:02AM
david said...
i would simply like to know appox how much in "bonuses" of all types have been givento Wall Street employees during the last 3 years as we have watched their work and advice cost us in losses.
10-28-2008 @ 9:42AM
Cawhorn said...
I have to ask? Just how stupid are we the American people? When are we going to realize that the United States Congress is the biggest thieves that exist today. They give way our tax dollars to their “friends” to give to their “friends” and we do without. They give themselves raises, get full salary after retirement of only one term and tons of poorly published tidbits. We are the funders. Stop it! April 15, 2009 sign your tax return without filling it out, mail it in (ALL OF US) and get their attention! Watch Social Security get fixed when they are on it and tar and feather the entire Wall Street group…including Congress.
10-28-2008 @ 12:27PM
Eli said...
OK all you wall street bastards. I want my money and I want it now. You are all getting bailed out and walking away with 10's of millions. That bald headed crook Grasso walks away with $180 million. Merrill Lynches CEO walks away with $161 million. I lose $300,000 of my retirement. Those that have stolen from me will get theirs. Your families will be better off without you. All those government officials both elected and appointed will get theirs. I no longer will play the stupid American, letting myself be walked on. Wake up America. Next April 15 rip up your returns unless you figure out how to get your money back. On election day, read a book or rent a movie. No use voting for the do-nothing politicians who only say what they do to appease whoever they are talking to at the moment.
10-28-2008 @ 1:12PM
Stuart said...
$210,000 per employee at GS. Thats sad. I want Congress to let these companies fail, if they were even in hardship to being with. Its all a giant scam and we are the victims.
10-28-2008 @ 1:54PM
Brenda said...
Hats off to all of you. Very well said. Especially where we're suppose to not pay anymore taxes. I've thought that is the way to go for a long time. The sooner we take action, the sooner we take this country back, and put our government back in it's place, working for us. I'm real sorry for everyone who's lost a lot of their retirement money but the sooner this government falls on it's face , the sooner we can start to clean up this mess, and get back in control. I think people have forgotten that the government works for us. BY THE PEOPLE, FOR THE PEOPLE!
10-28-2008 @ 3:25PM
Jim Burgess said...
I can't believe lynch mobs aren't storming these capitist pigs mansions, burning them to the ground and hanging the greedy pigs inside. American has turned into a nation of wimps!
10-29-2008 @ 11:40AM
Ivan said...
It's just amasing that there was no direct stipulations as to what the money was to be used for, and now the politicions have the nerve to act suprised. Do they really think the pubic is that foolish?
We should not vote for any encumbent, clean them all out and start new.But I am sure they already got there share of the pot.
10-29-2008 @ 2:01PM
Troy said...
All are excellent, but sadly true. The worst reality is that noone will dare revolt and not pay the taxes...because the gov. has got us scared to death of either being audited, fined, jailed or worse..and if we have kids, the last thing we want to do is to have them be effected.
This whole thing is a scam. These folks push and push to see what they can get away with and probably chuckle at how suprisingly much they can get away with.
As it was said before...we, the Americans are powerless to do anything about this kind of criminal behavior that the ultra rich, powerful and connected, get away with as single individuals, but collectively we could- if we have the guts, not to file w/IRS, protest at the Capital bldg. in Washington or in our State and even our Towns, send letters, make the calls, take up collection and run TV and Radio ads and back eachother up when they come to get us and shut us up.
I have taken allmy $$ out of the stock market and investments and invested it in my own small company, where I have control over the return of each dollar. I am done believing that these cronies running for office, on almost all levels, are honest, decent and selfless people, working for US and trying to make society a better place for us all to live and make a living, raise our kids and live the kinds of lives that we should be able to live- there's plenty of money that's being funneled illegally if not completely immorally into a few special pockets- OUR money! Money that we need to keep our homes, dinner on the table, gas for the car and education for our kids.
As far as my social security benefits are concerned, I say to the gov. take it all- all of it! But leave me alone to make my own retirement (as if that isnt the case anyway), and stop ripping me off, NOW!
I am game for a working for this if others will join me...?
11-20-2008 @ 4:26PM
Chuck said...
We sailed the ocean blue back in the 1700's because our forefathers no longer wanted to be taxed to death, they told the King's and Queen's of the United Kingdom to go and kiss their new found American asses. They fought to be free including free of taxation. They through the tea overboard, so they would not pay the tax. We need to standup and have another tea party.
Those fat bastards from Wall Street need not accept their bonuses but give thanks that they are getting their salads tossed in prison.
11-21-2008 @ 11:53PM
Larry said...
Why are we giving any bonuses to people who have run their companies into bankruptcy? We need to start electing new politicians that will work for us and not for the big guys.
11-27-2008 @ 7:50AM
jerry said...
if 50% of the american people stuck together and refuse to federal taxes, what would the goverment do? put 50% of us americans in jail? im sorry people this country is screw up{ im putting that mildley}