It's no surprises the rumblings have started. Cut of bonuses. I'm hearing rumblings around the office that some people are expecting bonuses to be cut, slashed. I'd expect this for those with equity in the game and it would make sense on leasing and origination/production/exec and partner side.
Are others in the MF/Office/Industrial space hearing this as well?
What are people hearing vs their feelings?
I expect my 20-25% bonus to be slashed in half at least. With a minimal raise...even though I took over a higher role from someone that departed.
Ah, the bonus chatter, it's like a jungle drumbeat that gets louder as the year-end approaches. Based on the most helpful WSO content, it seems like you're not alone in your concerns. There have been whispers about bonuses being cut, especially in the wake of financial shifts and restructuring.
In the City, there are rumors of base numbers being pumped to attract and retain talent, but that doesn't mean things are particularly rosy when it comes to bonuses. There's talk about a pending "bonus-pocalypse". It's logical, given the financial climate. For instance, there was a recent Financial News article about IB compensation at Morgan Stanley, and similar parallels were drawn to the shrinkage in JP Morgan’s IB business.
Moreover, on European banks, there's anticipation of another set of cuts around the January time frame. Bonuses are expected to be down materially as well. A rough estimate suggests another 15-20% decline in bonuses.
In the real estate sector, the situation seems to be similar. The reduction in $/sf coming in for an office directly impacts the valuation of the asset, which could affect bonuses.
So, if you were planning on a big bonus to get you your first Rolex and a fall trip to Europe, maybe think again. But remember, these are just rumors and estimates. The actual figures will only be known at the end of the year.
In the meantime, keep swinging from those branches and doing your best work. After all, the jungle is full of surprises!
Sources: 2020: Real Estate Bonuses, Goldman Beat, IBM Bust | The Daily Peel | 7/19/22, Future of Wall Street
Sorry to hear that. Our bonuses are still on target and was all communicated. We’re a national AM firm invested in all asset classes though so that helped balanced the boat a bit.
Curious what your target bonus is?
Thanks! Have some guidance, just we don't find out till next year as bonuses are paid around tax season. But keep getting told not to worry, but still don't get our hopes up. So can't tell if it means you base bonus is hit or just the add on fruitful benefits of revenue growth are not going to be there this year. I'm assume the latter the way people have been the last couple of weeks.
Large Dev shop, 3 YOE (just over 1 in RE / at this firm)
Our target bonuses are fairly small and effectively guaranteed (ie unless the firm as a whole loses meaningful money, they will be paid in full unless you're being shown the door), so I expect that to be as expected.
YE Promote/profit sharing will be relatively lean this year, but I have had a good year and have received some guidance, so I am expecting somewhere in the range of 2-3x my target bonus for that, for an all-in bonus of about 40-60% of base
Yall are getting bonuses?
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