Does it stay the same? Does Charlie look at the percentages for the so called rank-and-file (yes, that includes you, middle management) and pump the brakes?
It's no secret that Wells pays out better bonuses than the competition. I know because I came from a peer where bonuses are nowhere near the same. I'm wondering how long it lasts.
I work in retirement, and we've been losing business left and right for years. We haven't made any money since I don't know when, so the bank sold us last year. However, I've gotten a bonus every year, with this year being the best ever. I think it's because they've been trying to turn us around and knew that they needed their employees to do that.
I rather have a job than a bonus.
They don’t have to change the bonus structure. They’ll just drop the percentage they pay out. Two years ago the bonus pool for our group was only 95% of target. This year it dropped to 90% of target. They will cite the terrible financial results and just make a deep cut to the pool they fund in January. I’m guessing we’ll see no more than 75% of target to fund the pool this year. And I wouldn’t be surprised if it’s even lower than that. Of course Charlie and his band of merry men will “participate” in the pain and I’m sure they will complain to their country club buddies that their bonus was “only” $xx millions this year.
The bonus structure in Corp risk was just revised last year along with job titles so I wouldn’t expect any changes in that space. Now that’s not to say to expect to receive your target bonus next year as they are dependent on being funded; I knew quite a few people this year that didn’t get their full target, only the top performing employees did; would expect the same for this upcoming season..
they won't cut bonuses for. top performers; they'll need them to help turn everything around. the bonuses are part of the "competitive compensation" and without folks we need would leave
The Chase playbook is any bonuses in a bonus pool is collected by the execs and never cascade down. I expect that to be adopted here.
Wells Fargo bonuses are terrible comparatively. It’s a joke unless you are an executive.
We have a major revenue problem right now. We cannot originate enough new business in this environment to offset the level of expenses. This is all due to the asset cap, which will likely remain in place through 2021.
I believe that LOBs will pay out same or slightly lower bonuses next year. After letting go of many employees, Charlie cannot tell the remaining employees that their compensation will be cut. That will lead to a mass exodus of employees.
We didn't lose money, it's a slide of numbers.
"Bonuses? Don't talk about bonuses. Are you kidding me? I'm just hoping to collect another paycheck" **
** Paraphrase of former NFLColts Coach Jim Mora's epic rant during post-game press conference ("Playoffs?! Don't talk about playoffs! Are you kidding me? Playoffs?! I'm just hoping we can win a game, another game!"_
Well, considering Wells Fargo increased its credit loss reserves by $8.4 billion to $9.5 billion it was viewed has the “worst” earnings quarter. Just fudge the numbers on the balance sheet to make the shock and awe so you can control the narrative. Expect executive leadership getting their full bonuses while the rest gets the privilege to keep your jobs. I don’t disagree we need to cut expenses but it is the same game, at a different bank. The employees are the ones who are ultimately punished.
Uh, we lost how many billion Q2???? And we are talking bonus?
Bonuses are discretionary and largely driven by goals cascaded down. If things continue where they are expect relatively small bonuses next year (if at all). Of course the execs will get theirs.
With the economy the way it is, the efficiency ratio, etc. it'll be tough turning things around quickly.
Charlie is going to have to push things to make the numbers work.
If the survivors are paid bonuses in 2021, after slashing the dividend, it would be shocking.
After that, who knows? I'd imagine the structure will remain the same but will be nearly impossible to get a full bonus - even after all of the dust settles.
There's definitely a new sheriff in town.