Wall Street bonuses poised to drop as banks focus on cost cuts

NEW YORK: Traders and bankers hoping a better-than-expected third quarter would boost their year-end pay are likely to be disappointed.

Bonuses across Wall Street are poised to drop in 2019, according to a report by compensation consultant Johnson Associates Inc yesterday. Equity traders are likely to fare the worst, with a drop of as much as 15% from a year earlier, while debt and equity underwriters may see a 10% decline. Fixed-income traders may do slightly better, with their bonuses falling only as much as 5%.