Low bonuses expected on Wall Street despite booming economy

Wall Street bonus payments aren't looking great despite the booming U.S. economy.

For weeks, those keeping an eye on financial services companies have warned of lower compensation and bonuses, and technology may be to blame for automating some parts of employees' jobs.

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Wall Street bonuses might fall for a second year straight — in 2018, they fell by 17 percent to $153,700, according to a study by the New York State Comptroller. Such bonuses can be worth more than employees' base salaries.

"There are not too many on Wall Street happy about their bonus expectations for this year," headhunter Sanj Hingorani told The New York Post. "We've been getting a lot of phone calls and messages, too, from people in financial services who are worried about their jobs."

Faltering expectations come amid a report that investment firm Morgan Stanley is cutting 2 percent of its workforce.

Most bankers will see their compensation go "modestly down," according to a report by talent acquisition and development firm Options Group.

"Technology is a big disruptor across the board over the past five years, three years," Options Group CEO Mike Karp told FOX Business. "Tech has really affected how our world looks in financial services. Going forward it will be more at the forefront. ... We've seen in the last few years candidates are changing. Traders across the board need to understand basics of what tech is."

The predictions also come as President Trump touts the U.S. economy and uses it as a selling point for his re-election.

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"The best Economy ever!" Trump wrote on Twitter earlier in December.

The Options Group report is based on data available between Jan. 1 and Nov. 15, 2019.

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