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% last year, compared with a 45% jump in the US, according to data compiled by Bloomberg.
Pay for most senior investment bankers at 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 US$700,000 ($937,765.50) to US$800,000, well below the US$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% of managing directors at banks, including Morgan Stanley and UBS Group AG, received no bonuses last year, the people said.
