Compensation consultant says Wall Street year-end bonus pay could reach $23 billion, the highest since the financial crisis.
The nation’s five biggest banks are on track to pay out $127 billion in total compensation, including at least $23 billion in bonuses, this year. That’s up from the $114 billion the banks shelled out to their employees in 2009. It translates to $149,472 per full-time employee for 2013, and is roughly triple the pay of the average American.
In an article in Tuesday’s New York Times, Paulson said he was disappointed by the size of the bonuses banks paid in the wake of the financial crisis and subsequent bailout. The former Treasury Secretary, who enjoyed some rich Wall Street paydays as the former CEO of Goldman Sachs (GS), says he was dismayed about the timing of the large 2009 bonuses. He says it turned the public, which was always on the fence about the Wall Street bailout, sharply against the TARP program, which the Times calls Paulson’s “crowning achievement.”