Major US banks and securities firms are moving towards paying their employees a record sum of about $145 billion in compensation for 2009, despite facing public ire over exorbitant executive pay packets.
According to an analysis by The Wall Street Journal, employees at 38 top financial companies in the country can expect to 'earn nearly 18 per cent more than they did in 2008 and slightly more than in the record year of 2007.'
"This year major US banks and securities firms are poised to pay their employees a record amount in compensation and benefits about $145.85 billion," according to WSJ's analysis.
The conclusions are based on an examination of securities filings for the first nine months of 2009 and revenue estimates through year-end.
The rapid comeback of pay on the Wall Street, which would be on display as firms report fourth-quarter results, has exposed the industry to a broadening mix of proposed crackdowns, including a 10-year $90-billion bank tax about which President Barack Obama gave details on Thursday.
The WSJ report noted that the surge in bonuses comes barely a year after the government bailed out the US financial system from the worst economic crisis in generations.
The analysis include banking giants JP Morgan, Bank of America and Citigroup, and securities firms such as Goldman Sachs and Morgan Stanley among others.
The growth reflects a rebound in the banking industry's revenue to pre-crisis levels.
The firms in the analysis are expected to report $450 billion in revenue, a 25 per cent increase from levels of 2007.
Overall, the emolument on the Wall Street is on pace to be equivalent to about 32 per cent of revenue, a 40 per cent decline from 2008, the report added.
The report quoted US law firm Jones Day's lawyer Mike Shah, who advises companies on executive pay and employee benefits, as saying, 'the companies have done well since the meltdown. Some of it has to do with government assistance.'
Total compensation and benefits at the publicly traded firms analysed by WSJ are on track to increase by 18 per cent from 2008's $123.4 billion, and six per cent from 2007's $137.23 billion payout.
