Article by Gillian Tett in today's FT.
The sector is shrinking: an estimated 60,000 jobs were cut last year. Staff are being paid in stock deferred over a longer time, and pay appears to be falling. Morgan Stanley, for example, has declared plans to cap the amount of bonus that its staff can receive immediately at $125,000; Goldman Sachs has announced that it is cutting 2011 compensation by 21 per cent; JPMorgan Chase has cut the total pay pool for its investment bankers by 36 per cent year on year. Indeed, the consensus among bank executives in Davos last week was that total compensation for mid- to senior-level employees in 2011 was about 30 per cent lower than 2010 – and perhaps 60 per cent below the 2007 peak.