Added by Gary Dunn on October 13, 2010
Compensations experts stated that large banks on Wall Street are not likely to accelerate bonus payouts, although doling out bonuses in December might act as a tax-bill cutting action of employees.
Experts further added that is banks would pay out early bonuses they’d cause a PR (public relations) disaster, and thus are unlikely to do so since this sector has already been blamed for being the main cause that brought the economic downturn.
One of the first Wall Street firms that clearly dismissed the idea of moving up bonus payouts was Morgan Stanley that made a statement with regard to the issue on Monday, October 11, 2010.
According to Reuters who quoted data from eFinancialCareers.com, only 36 per cent of US employees who work in the financial services sector have expressed they expect to receive partial payments for their 2010 bonuses before the end of the year.
However, there are rumors supported by financial analysts such as Mendon Capital Advisors that have been speculating for a while now that Wall Street firms would pay out early bonuses, fearing of possible tax changes.
Industry observers expect a wave of layoffs on Wall Street in the up-coming months, fact that makes it even less likely for Wall Street firms to accelerate bonuses during the next time period as it would cause a PR disaster.