Bonuses Could Jump 40 Pct On Wall Street

STEPHEN BERNARD

NEW YORK (AP) — Big bonuses could be back in store for some top executives and traders on Wall Street as profitability returned to the investment banking industry in 2009, according to a new study released Thursday.

Johnson Associates said employees at companies that no longer are under strict government oversight are likely to find a big boost in their year-end paychecks compared with 2008. However, pay is still likely to fall below that seen in 2007 when the stock market and bonuses peaked, the compensation consulting firm said.

Overall, Johnson Associates projects workers at Wall Street banks will see between a 30 percent and 40 percent jump in year-end bonuses in 2009 compared with last year.

The increase in pay is likely to be even larger than average for equities, bonds and derivatives traders who have helped drive profits at their respective firms as the market has surged nearly nonstop since hitting a 12-year low in March.

Banking bonuses have been a hot-button political issue as financial markets have recovered much faster than the broader economy and the nation's unemployment rate approaches 10 percent.