According to an article published in the International Herald Tribune and Bloomberg, Gary Goldstein, chief executive of the Whitney Group, an executive-search firm in NY, stated: “Looking at the world today as we see it and the impact the crunch is likely to have, it looks like bonus pools will decline.”
The hardest hit will likely be employees who create and sell securities backed by mortgages or pools of debt, according to Options Group, a firm in New York that tracks pay and hiring trends.
Hedge fund investment managers, whose average payout rose as much as 15% in 2006, may see a drop of 5% to 10% in 2007.