Crain’s New York Business
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Happy paydays are here again. On Wall Street, at least.
Compensation consultancy Johnson Associates last week forecast that Wall Street bonuses would rise 40% this year. At Goldman Sachs, average pay per employee is on pace for $658,000 this year—80% higher than a year ago. Generous pay guarantees for incoming executives and golden parachutes for departing managers are making a comeback at financial firms. And salaries are going straight up.
American Express Co. last month disclosed it recently raised the base salaries of its chief financial officer and two other executives by a range of 24% to 48% to offset 10% pay reductions they took earlier this year, before the credit card giant had repaid the government its $3.4 billion in bailout money. And new details on the $20 million exit package for President Alfred Kelly, who is leaving AmEx by April to search for a CEO post elsewhere, show his $9.7 million in severance will be paid fortnightly over two years, even if he lands a job at Bank of America or another big competitor. AmEx declined to comment.