(Reuters) – U.S. financial services industry incentives are expected to be broadly flat this year and compensation for top executives likely to be flat to down, according to a report published Wednesday by consulting firm Johnson Associates Inc.
There is likely to be a wide variation in the incentives payout, with sectors linked to trading seeing an increase of as much as 30% due to the sharp recovery in markets from the COVID-19 pandemic-induced lows. Payouts in real estate are expected to drop by about 10%, the firm said.
CEO compensation will receive additional scrutiny this year as it would be difficult to justify an increase in salaries in a mediocre pay year, Johnson Associates added.
The estimates of the Johnson Associates are closely watched by financial professionals.
Financial services industry headcount is expected to decrease meaningfully due to the continued "revenue challenges", with the firm estimating a 10% drop from February 2020 to July 2021.Leave a comment