Thursday, August 17, 2006

So, just where are the customers yachts??

NEW YORK (MarketWatch) -- Wall Street bonuses are on track to exceed last year's totals, including a 20% to 25% surge for equity bankers, according to a forecast issued Monday by compensation-consulting firm Johnson Associates Inc.

Equity units will benefit from higher volumes, valuations and international results. A strong year for proprietary trading is also expected to boost compensation payouts. Last year's big winners in the bonus bonanza, mergers and acquisitions bankers, can expect year-end increases of about 25% as well, Johnson said.

Globally, Goldman Sachs Group, Morgan Stanley, Citigroup Inc., Credit Suisse Group, UBS AG and J.P. Morgan Chase & Co.were among the industry leaders in equity trading and underwriting in the first half of the year.

The same firms, including Merrill Lynch & Co., led a record first half in M&A advisory, according to Dealogic.

Overall compensation is expect to rise about 15%, with retail bankers bringing up the rear with 5% to 10% increases. Johnson also estimates that employment is up 3% to 5% from the same period last year.

Uncertainty about the global economy, oil prices and inflation are tempering the amount of money big banks are setting aside for compensation.

In 2005, the average bonus on Wall Street was $125,500, up 10% from 2004 -- with top bonuses going to mergers and acquisitions bankers, who saw deal volume rise 28% in 2005. Bankers generally earn base salaries of $150,000 to $300,000, according to estimates.

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Native American Advisors CHIPPEWA PARTNERS

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CHIPPEWA PARTNERS, Native American Advisors, Inc. is a Registered Investment Advisor, founded by Dean Thomas Parisian in 1995. The firm is a manager to an exclusive clientele and is closed to new clients. As a Registered Investment Advisor, our expertise developed over 35 years balances experience, integrity and tremendous work ethic. Dean Parisian is a member at the White Earth Reservation of the Minnesota Chippewa Tribe, a former NYSE and FINRA arbitrator and trader who began his career with Kidder Peabody and later worked for Drexel Burnham Lambert in LaJolla, CA. His philanthropic interest is in Native American education and he's endowed a significant scholarship for Native Americans at the University of Minnesota. His greatest accomplishment includes raising two sons and 26 years of marriage. The Parisian family enjoys outdoor pursuits at Pamelot, their farm in Tennessee and at the Ghost Ranch, their ranch on the Yellowstone River in Montana. For media requests contact the firm via email: ChippewaPartners (at) gmail dot com, on Twitter: @DeanParisian. Global 404-202-8173