Big Banks Are Planning Chances to Banker Bonuses

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Another year, another series of bonuses for Wall Street. According to people familiar with the matter, JPMorgan Chase & Co. (NYSE:JPM) plans to increase bonuses for investment bankers while Morgan Stanley (NYSE:MS) will increase the cash portions of its end-of-the-year pay outs, the Wall Street Journal reports.

According to the WSJ, some bankers at JPMorgan may see increases of 6 percent to 10 percent year-over-year, although bond, currency, and commodities traders are likely to see about a 5 percent cut.

“It very much depends on what seat you’re in,” Brennan Hawken, an analyst with UBS, told the WSJ. “The winds of favor have really shifted against… the bond traders and commodities traders that for so long did really remarkably well.”

Over at Morgan Stanley, a larger portion of the bonuses will be distributed this year as cash rather than through deferred payments. A person with knowledge of the matter told Bloomberg that the firm deferred bonuses last year for those with total pay of $350,000 or above and at least $50,000 in incentive compensation. In recent years, the practice had led to significant tension within the firm with Morgan Stanley Chief Executive Officer James Gorman suggesting that bankers or traders leave if they didn’t like the program, WSJ reports.

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