The most important day of the year on Wall Street — bonus day — is edging closer.
It is the day that banks tell employees what they'll receive for their work from the previous year. Bonuses, not base salaries, are where bankers make their millions.
It looks as if the first couple of banks will announce bonus numbers this week.
All the details below are from people with knowledge of the schedules at the banks. All asked not to be identified:
- Morgan Stanley is expected to tell its staff the all-important numbers on Thursday.
- Citigroup is expected to announce on Friday.
- JPMorgan could announce in the middle of next week.
- Goldman Sachs is set to go a day or two after that.
- Bank of America is due to announce at the very end of January.
Representatives at all the banks declined to comment.
Banks tend to group their announcements around the time earnings are reported (those reports kick off Thursday), which means US banks typically announce in January and European banks announce in February.
The dates are provisional because bonus announcements and the sums involved can change until the very last minute.
This time last year, Bank of America Merrill Lynch and Citigroup had to revise their bonus pools down at the last minute after the last few weeks of 2014 came in weaker than expected.
Still, it is clear that before long Wall Streeters will have an idea of how they will be paid. That then leads to the annual hiring merry-go-round, with numerous bankers and traders quitting to join a rival shortly after their bonus (or at least some of it) lands in their bank accounts.
Wall Street seems to be pretty down on the bonus round this year.
This chart, based on data from a November survey by the Wall Street recruitment firm Options Group, shows bonus expectations for top performers.
