Top banker pay sinks below $1 million in Asia as bonuses vanish
Wall Street firms in Asia dropped to the lowest level in almost two decades, according to people familiar with the matter, as a dearth of deals in China and Hong Kong hammered the industry. Total compensation for many senior bankers in Asia ex-Japan fell to $700,000 to $800,000, well below the $1 million or more they have typically earned since the turn of the millennium, the people said, asking not to be identified discussing private matters. At least 20 percent of managing directors at banks including Morgan Stanley and UBS Group AG, received no bonuses last year, the people said.
Also Read | When bankers' pay was brought under scrutiny, no one saw this coming Pay is crumbling in part as firms seek to cut expenses amid one of the worst deal droughts ever seen, fueled by rising political tension and a crackdown on private enterprise in China. Goldman Sachs Group Inc., JPMorgan Chase & Co. and Citigroup Inc.
have made several rounds of job cuts in Asia over the past 18 months as stock sales and mergers tumble. Asia stock offerings outside Japan plunged 30 percent last year, compared with a 45 percent jump in the US, according to data compiled by Bloomberg. Bank of America Corp.
cut more than 20 investment-banking jobs in Hong Kong this week, people familiar with the matter said. UBS cut about two dozen investment bankers in Asia, mainly China-focused roles in Hong Kong, Bloomberg reported in October. JPMorgan slashed about 30 Asia dealmaking jobs earlier in the year.
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