It's been a difficult road for Wall Streeters since the financial crisis, as the industry conformed to new regulations and the end of trusted revenue streams.
But it looks like things are finally stabilizing. That means we're getting a clearer picture of what the new Wall Street will look like — especially in terms of pay structure.
Johnson Associates Inc., a compensation research firm, just released its 2012 report on the financial services industry. It covers everything from investment banking to fixed income to hedge funds. The numbers give us a glimpse of where the money is settling in terms of compensation on the Street.
Talent will follow the money, so it's an indicator of where Wall Streeters will want to be.
Johnson projects that fixed income and equities professionals will see declines from 30 to 45 percent from 2010 levels.
The second biggest loser here is in investment banking, where incentive-based compensation is expected to change by -10 percent to -15 percent. Overall compensation is expected to decline as much as 20 percent.
That's in addition to last year's decrease by 20 to 30 percent. This shouldn't surprise everyone given that this sector has been hit really hard with layoffs. Debt underwriting has improved, says Johnson, but mergers and acquisition activity it still slow.
