Goldman Sachs, JPMorgan Chase and other big banks are bracing for a renewed public and political backlash against their compensation plans as they prepare to unveil multi- billion dollar bonus packages.
Under pressure from government, banks are already saying they will devote the smallest percentage of annual revenues in years to their employees. But the raw numbers will still be big enough to provoke public anger, while also prompting internal dissent from traders and bankers who will see a larger share of their bonuses deferred.
A taste of the political furore likely to accompany the bonus season comes today from a key Washington powerbroker. Andy Stern, head of the Service Employees International Union, said: “They backed the truck up to Fort Knox in broad daylight. They emptied it out, we rescued them and they get $150bn in bonuses.”