Are Wall Street's titans actually heeding widespread calls for restraint as the rest of the nation slogs its way through a painful economic recovery?
That certainly appears to be the case according to recent news that Goldman Sachs, Morgan Stanley and JPMorgan each cut their pay pools last year.
According to Bloomberg News, Morgan Stanley, owner of the world's largest brokerage cut its investment bank pay pool by 2 percent last year.
"James Gorman, who became Morgan Stanley's chief executive officer last year, has promised to reduce the portion of the company's overall revenue awarded in compensation after it surged in 2009. Some employees were told to expect investment banking and trading bonuses to decline 10 percent to 30 percent from 2009, two people briefed on the matter said last month."
Meanwhile Goldman Sachs, which remains a top target for populist wrath against the excesses of Wall Street, announced that its compensation and benefits expenses fell by 5 percent in 2010. And JPMorgan instituted a reduction of its own.
"JPMorgan Chase & Co.'s investment bank cut average pay per employee 2.4 percent to $369,651 last year, the New York-based lender said last week. The compensation pool climbed 4 percent to $9.73 billion, less than the increase in employees at the investment bank. Compensation amounted to 37 percent of revenue last year, up from 33 percent in 2009."As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced Trading in 2010, Grant's news analysis has touched on everything from the latest ... View Full Bio