Total compensation for many senior bankers in Asia ex-Japan fell to US$700,000 to US$800,000, well below the US$1mil or more they have typically earned since the turn of the millennium. — Reuters
SINGAPORE: Pay for most senior investment bankers at Wall Street firms in Asia dropped to the lowest level in almost two decades, according to people familiar with the matter, as a dearth of deals in China and Hong Kong hammered the industry.
Total compensation for many senior bankers in Asia ex-Japan fell to US$700,000 to US$800,000, well below the US$1mil or more they have typically earned since the turn of the millennium, the people said, asking not to be identified discussing private matters.
At least 20% of managing directors at banks including Morgan Stanley and UBS Group AG, received no bonuses last year, the people said.
Pay is crumbling in part as firms seek to cut expenses amid one of the worst deal droughts ever seen, fuelled by rising political tension and a crackdown on private enterprise in China.
Goldman Sachs Group Inc, JPMorgan Chase & Co and Citigroup Inc have made several rounds of job cuts in Asia over the past 18 months as stock sales and mergers tumble.
Asia stock offerings outside Japan plunged 30% last year, compared with a 45% jump in the United States, according to data compiled by Bloomberg.
Bank of America Corp cut more than 20 investment-banking jobs in Hong Kong this week, people familiar with the matter said.
UBS cut about two dozen investment bankers in Asia, mainly China-focused roles in Hong Kong, Bloomberg reported in October. JPMorgan slashed about 30 Asia dealmaking jobs earlier in the year.
The deals slump was reflected in compensation, with only a handful of top performers from each bank in Asia paid as much as US$1.5mil.
That’s about 20% less than what star bankers took home in 2022, and half the amount from 2021, the people said.
Overall, total compensation for managing directors fell 20% to 25% across Asia, the people said. The decline in bonuses was more pronounced than the base-pay component.
Spokespeople at the banks declined to comment on the pay. — Bloomberg
