International Finance: Top bankers in Asia see pay cuts of 50% after drought in deals

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Top investment bankers in Asia ex-Japan at Wall Street’s biggest firms are having their worst payouts since the financial crisis more than a decade ago, according to people familiar with the matter.

On average, managing directors at banks including Goldman Sachs Group, Morgan Stanley and Bank of America have seen their total compensation drop by 40% to 50%, with payouts for senior MDs falling to between $800,000 to $1.5-million and for first-year MDs to $600,000 to $1-million, the people said, asking not to be named discussing internal matters.

Global investment banks are now pushing hard to keep a lid on costs after increasing their staffing over the past few years in a war for talent and higher inflation. While Asia has been investment banks’ biggest growth markets for years, job cuts have proliferated and the tough bonus news is expected to help reduce headcount further.

Business has been hard hit in China by a regulatory crackdown and the nation’s now abandoned pursuit of Covid Zero. Most dire was a move by Beijing to limit the ability by domestic companies to sell shares overseas, triggering an 88% slump in those deals last year. Globally, investment-banking revenue declined about 50% last year at the largest lenders.

 

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