Wall Street bonuses 'hammered by credit crisis'

7 August 2008

Another victim of the credit crunch has been revealed: generous Wall Street bonuses.

Research by Johnson Associates shows that a majority of bankers will have theirs reduced by 15 to 25 per cent, when compared with the payments they received in 2007.

Moreover, this decline is expected to be most marked at boardroom level, with senior managers pocketing 35 to 45 per cent less than they did last year, CNNMoney reports.

A combination of stock value erosion and poor earnings caused by the global credit crisis, along with shareholders disgruntled by "fat cat" executives, is thought by Johnson to be behind this general decline.

Elsewhere in the financial sector, hedge fund manager bonuses are expected to take a 15 per cent hit, while real estate brokers are to take home ten per cent less.

Banks are estimated to have written off in excess of $300 billion since the onset of the credit crunch last summer.

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