Thirteen years after Credit Suisse Group AG crowned itself Wall Street’s new junk-bond king by buying Donaldson Lufkin & Jenrette Inc., the last vestiges of its reign in the most-lucrative credit business are being squeezed out by post-crisis banking regulations.
Goldman Sachs Group Inc., which set Wall Street pay records when stocks surged and cheap credit abounded in 2007, is again leading the industry as markets boom anew: putting aside less money for staff and more for investors.
Compensation for Wall Street’s equities salesmen and traders is expected to rise in 2013, while total pay for employees in fixed-income units may drop 10 percent, according to recruitment firm Options Group Inc.
Salaries for banks’ risk and compliance officers in Singapore and Hong Kong rose at about twice the pace of pay for similar positions at New York and London firms amid a shortage of skilled staff members, a recruiter said.
Four days after the U.S. government indicted SAC Capital Advisors LP, describing it as a “veritable magnet for market cheaters,” founder Steven A. Cohen walked around the firm’s Manhattan offices on Madison Avenue and spoke with employees, telling them that “bad apples” exist in any organization.
SAC Capital Advisors LP is raising bonuses for its portfolio managers by 3 percentage points to help retain employees as the U.S. government’s insider-trading probe moves closer to Steven A. Cohen’s $14 billion hedge fund, according to a person familiar with the matter.