Wall Street's 2011 Pay On Track To Break Records Despite Layoffs And Canceled Holiday Parties

While many Americans will be squeezing as much as they can out of falling incomes to provide gifts this holiday season, some on Wall Street may be getting a nice little holiday present this year -- a boost in pay.

Seven big banks' compensation data for the first three quarters of 2011 indicates that Wall Street pay is on track to exceed 2010 levels, according to an analysis from the Public Accountability Initiative. The report found that big bank compensation, which includes salaries, benefits and bonuses, will likely total $156 billion -- a 3.7 percent boost from 2010 -- and a record breaking number.

Six out of the seven banks studied set aside more for compensation in the first three quarters of 2011 than in 2010. Bank of America set aside 7 percent more for compensation, despite having a dismal year that included a debit card fee debacle and its shares dropping below $5 for the first time in years.

Goldman Sachs, which in October recorded its second loss ever as a public company, set aside less in compensation the first three quarters of this year. Still, Goldman employees will take home $362,862 in compensation on average, compared with the U.S. median annual wage of $26,364.

The findings come as the Occupy movement, politicians and others continue to use high pay on Wall Street to highlight growing levels of income inequality. Many firms have cancelled or moved in house formerly lavish holiday parties in part because of rising criticism from Main Street, The New York Times reports.

Though they're scaling back holiday parties to avoid what could be a PR disaster, many bankers don't seem to care that ordinary Americans may resent their huge pay checks. Bankers are joining up with billionaires in an effort to defend themselves against criticisms of the one percent, Bloomberg reports.

That could be because the news isn't all good for Wall Street workers. Even as overall compensation is slated to grow this year, bankers' bonuses are likely to be down 20 to 30 percent, according to Johnson Associates Inc. survey released last month. A different November compensation study found that Wall Street pay may sink to the lowest levels since the financial crisis, The Wall Street Journal reports.

In addition, the financial services industry has lost more than 200,000 jobs this year, according to Bloomberg.

CORRECTION: An earlier version of this post misstated that the U.S. median income fell to $26,364. The U.S. annual median wage fell to $26,364.

Comments

[themodernleader]

02:43 AM on 12/22/2011

This condition indicates who is master of our declining organization. What a damned outrage and rebuke of democracy. If I were president those financial predators would pay 90+ percent of their winnings in Federal windfall taxes as their banks were audited and regulated or closed down. Our President pretends nothing untoward is happening as more and more of our citizens dwell in idleness and destitution.

[jc323]

02:35 AM on 12/22/2011

Of course, what does the financail interest really do besides destroy, their new mission. All for the few nothing for you, after all they are superior to you, are they not? Lets just forget that their family trees look like telephone poles. The elites matra is monopoly not free market.

[anitaroosevelt]

12:55 AM on 12/22/2011

Once upon a time, if you did a bad job running your business, you didn't get a bonus, you got fired.

That's makes sense.

Very little that's happened in the last 30 years has made any sense at all.

Pres. Obama, what history will say about you is being decided now, by your actions.

How do you want to be remembered?

[sammyscout]

10:12 PM on 12/21/2011

Where's the outrage?

[Eva Connors]

12:20 PM on 12/21/2011

Oh God, not their bonuses! Anything but their bonuses being down 20 to 30%!

But really: how can you take in not only a very over-the-top paycheck but also a bonus and not expect to be criticized?

[SeenItBefore]

11:30 AM on 12/21/2011

This stopped being news 30 years ago. Upset with the situation... a few heads on pikes might help, until then, sit at home in your single wide, listen to hate radio and truly believe that by voting for the GOP/TP your fortunes will improve to the level of the Wall St. bankers.

[mdlawyer2]

10:49 AM on 12/21/2011

"Despite Massive Layoffs, Wall St. On Pace For Record-Breaking Pay." The headline SHOULD read "As A Result of Massive Layoffs, Wall St. On Pace For Record-Breaking Pay."

[Brian Novotny]

10:23 AM on 12/21/2011

Now they are even turning on their own so they can make even more money. Sooner or later someone they scru over will turn on them and they will be off to prison then. Only a matter of time before these clowns are in jail, shat, or worse.

[ThinkHappyThoughts]

09:04 AM on 12/21/2011

Poor guys..... Their bonuses will 20-30% lower. Can you imagine the impact on their standard of living. If you think about it, 20-30% of tens of millions is a life changing amount of money to most if not all middle/lower class family.

How disappointed do you think their kids are going to be when they realize Santa didn't bring them the Mercedes G-wagon they wanted for Christmas?

THINK OF THE CHILDREN!!!!!!!

(sarcasm of course)

[Mister Grumpy]

10:21 AM on 12/21/2011

Guess that means they won't be creating as many jobs either.........

[Eva Connors]

12:22 PM on 12/21/2011

What are these mythical jobs they create? Did you see the part about layoffs just so they can KEEP their bonuses? Do you think they go to the job creation store with all their money and hire new people?

No! The money sits in the bank looking pretty and pays for extravagant things that create absolutely NO extra jobs.

[tacevad]

09:00 AM on 12/21/2011

more money for fewer people, now that's Reagan's Dream come true /snark

[santacruzbluz]

08:56 AM on 12/21/2011

They may as well accumulate as many dollars as they can. When we start a new system, the first thing we'll do is make the dollars owned by the 1% worthless. Let them mow lawns and take out garbage if they want a start in the new system. All that money, none of which can be eaten, or burned or worn to keep you warm.

[sammyscout]

10:13 PM on 12/21/2011

would be nice to have a way to id them when we start the new system

[Micheal Anderson]

08:51 AM on 12/21/2011

Want to know how they can afford it?

http://www.huffingtonpost.com/2011/11/27/secret-fed-loans_n_1115564.html

Good think we pay these people top dollar, and more, to have the 'best and the brightest' running our financial system, keeping it rock solid and steady, while at the same time we gut teacher pay. You know, because any idiot can teach kids, you really gotta know something to be on Wall Street. Not like moocher public workers making millions off their outrageous union pay and benefits. I mean, not like hundreds of millions per person like Wall Street, but again, they're so much more important than worthless teachers.

[Mister Grumpy]

10:20 AM on 12/21/2011

Its all part of the dumbing down of America....... the stupid don't ask questions because they don't know what to ask....... as evidenced by the GOP'hers.........

[Aurical]

03:11 PM on 12/21/2011

If you ask the wrong questions it doesn't matter what answers you get.

[Mike Rock]

08:40 AM on 12/21/2011

Follow them to Greenwich and the Hamptons. It's time to revolt. Heads must roll if they won't accept a $100 million wealth cap.

[anitaroosevelt]

12:52 AM on 12/22/2011

I agree. Take them out. It's time.

[keedyk87]

08:36 AM on 12/21/2011

We are not taught the most fundamental aspects of our existance because we no longer study Philosophy or Philosophers! Philosophy studies the basic principles or building blocks behind Empericism and Idealism as did Plato and Aristotle. We are the victims of Plato's Cave!

[jflorish]

08:34 AM on 12/21/2011

I like how they say stuff like "average 400k bonus etc" .... CEO gets 40 million and a ton of workers get 2k, so it averages 400K a person..... lol.