By bloodbath, we’re talking bonuses ranging from flat to down 30 or 40%, depending on area, but at least base pay is flat, unlike…
First year associate base pay down to $120 from $125, second years to $140 from $150, bonuses flat.
Layoffs from MDs to admins
It was the last among major banks to dive into the Wall Street layoffs bloodbath last year, announcing plans only in mid-December to cut 1,600 employees from its payroll across all levels of banking and trading operations. [Ed: we're not even going to try to list all of the other banks' layoffs here]The bank had already cut hundreds of underperforming financial advisers from its wealth management business earlier in the year. The business ended 2011 with 887 fewer financial advisers than at the start.On a net basis, including strategic hires, Morgan Stanley’s workforce declined by 643 workers, or 1 percent, last year. The cuts were on par with the decline in workers at JPMorgan’s investment bank, but less than Goldman’s 7 percent decline.
Overall compensation on Wall Street this year is expected to drop at least 30 percent, reflecting the dismal financial results reported this week by the industry standard-bearers Goldman Sachs, JPMorgan Chase, Bank of America and Morgan Stanley. The compensation ratios are hard to evaluate because this year’s payouts include the deferred portions of previous years’ awards, and include only the current components of this year’s.
And on and on and on…
So why do we think things are just peachy in BigLaw?