Wall Street Payments Set To Break Another Record

From Slate:

The Wall Street Journal analyzed the numbers from 23 top investment banks, hedge funds, asset managers, and stock and commodities exchanges to estimate how much Wall Street employees will be earning this year. Grand total? Around $140 billion. That marks a 20 percent increase from last year's $117 billion and even more than the $130 billion in payments they received in 2007. The figures illustrate how, despite the continuing problems in the economy, Wall Street firms have been rebounding nicely and believe they need to once again start paying a premium to obtain the best talent. Ultimately, though, this is just an educated guess by the paper, which, it acknowledges, could end up being inaccurate if financial firms give in to what will undoubtedly be strong public and political pressure to not go crazy with bonus pay. Also, several of the firms analyzed will surely face restrictions from the pay czar. Still, it's a vivid illustration of how, long after the crisis hit, there is little that can stop the vast majority Wall Street firms from handing out millions in payments to employees. "Compensation played a role in the financial crisis, and yet nothing has changed," an expert in corporate governance said.