Assuming you keep your job, bonuses this year will be significantly lower than last. Is it really worth killing yourself for a base salary?
Some people appear to have come to the conclusion that it isn’t.
“Spending time with the family is the new thing,” says one hedge fund manager. “It’s fine putting in all those hours when you’re going to make a fortune, but it’s a different issue when all you’ll get is your base pay.”
Bankers could easily come to the same conclusion. First-quarter results released by Goldman, Lehman and Morgan Stanley this week showed 35%, 26% and 15% reductions respectively in the amount of money set aside for compensation.
On the call accompanying the results announcement, Goldman CFO David Viniar reportedly pointed out that compensation accounts for a massive two thirds of the firm’s total costs, suggesting bonus pots will be the first to go if conditions worsen.
Would you work 15-hour days for base salary alone?