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Wall Street: record employee compensation in 2021

Wall Street: record employee compensation in 2021

It’s been a banner year for Wall Street. According to information from echoes, the five biggest names in investment banking paid record compensation to their employees in 2021, totaling $142 billion. An unprecedented figure since the financial crisis and an increase of 18 billion dollars compared to 2020. In addition, these remunerations show a real boost on Wall Street.

In one year, the increase thus represents more than half of that accumulated since 2007 by the five largest American banks (31 billion dollars), explains Les Echos. In detail, JP Morgan, the first American bank paid 38.5 billion dollars to its employees, unheard of since the financial crisis. The sum is up $3.6 billion from 2020 and $15.8 billion from 2007.

Heightened competition

To explain these increases, the head of the bank, Jamie Dimon, highlights the “global competition” and the “competition of non-bank players, those of direct lenders, that [du courtier] Jane Street, the one [du hedge fund] Citadel, that of fintechs, that of PayPal”. A competition that the boss of the first American bank intends to “win. And sometimes that means you have to pay a few extra bucks.”

An effort that represents several billion for Goldman Sachs and Morgan Stanley, which respectively paid 17.7 billion and 24.6 billion dollars to their employees. On the side of Bank of America and Citi, this amount amounts to 36.1 billion and 25.1 billion with a mass of wage costs much higher and a policy much more generous than in 2020. The two banks, recalls Les Echoes, however, did not explode their historical ceilings, unlike the other giants of Wall Street.

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