US bankers' pay rises 'outstripping revenue increases'

14 October 2010

Bankers in America are on track to earn record levels of pay and bonuses in 2010 for the second consecutive year, a new study has revealed.

The growth in remuneration levels is expected to outpace that of revenue, with pay going up four per cent and banks' income rising three per cent, according to research from the Wall Street Journal.

With revenue set to stand at around $448 billion for the year, pay is estimated to hit $144 billion – with financial institutions increasing the amount of compensation they are paying out by 23 per cent.

Charles Elson, director of the Weinberg Center for Corporate Governance, said: "Until the focus of these institutions changes from revenue generation to long-term shareholder value, we will see these outrageous pay packages and compensation levels."

Earlier this month, the Financial Times reported that industry analysts are expecting disappointing third quarter results for banks such as Goldman Sachs and Morgan Stanley following a slow period of trading.

By Gary Cooper

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