Quote of the Day: Plunging Profits Have Little Effect on Bonuses

March 1, 2012 James Heinsman Quote of the Day

The New York State Comptroller Thomas DiNapoli issued a report on Wednesday predicting the drop in pay for security industry workers in New York will be only 14% after bonuses despite profits in the banking industry dropping by 51%.

“The securities industry, which is a critical component of the economies of New York City and New York State, faces continued challenges as it works through the fallout from the financial crisis and adjusts to regulatory reforms,” DiNapoli said in a statement.

Compensation leaves Wall Street firms in a quandary. It is the biggest expense and banks have been cutting their work forces by the thousands as banks continue to endure the difficult financial crisis, with the past year being their worst since the crisis began. Still, it is crucial to keep pay scales stable in order to retain and reward employees.

Banks, New York State Comptroller, Thomas DiNapoli, Wall Street.,

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