Brazil Bonuses Seen Outperforming

With bonuses now being paid, the expectation is that New York-based LatAm bankers may see compensation flat to lower, while counterparts in Brazil will get a bump. “If banks did well, bonuses in Brazil can be expected to be between 15% and 20% higher than in 2010,” says Vinicius Bolotnicki, Sao Paulo-based director at Options Group. BTG and Itau are expected to be among the most generous. “BTG has been heard as giving fair cash bonuses. Some who made partner level received good equity stakes,” adds Bolotnicki. Itau is heard paying 15%-20% more in bonuses than in 2010. However, despite a strong run for LatAm, with revenues significantly up, New York based bankers may be disappointed. “Rumor is that in the US, despite the LatAm teams being ahead of budget, compensation will not be great, as capital markets overall did not do well,” says a headhunter. He adds that New York salaries could be flat to 10%-15% lower than last year. Rossanna Figuera, CEO of The Talent Circle says the bonus pool has shrunk, with average bonuses down 20%-30%. “Most bonuses are flat to down from last year, but last year bankers were paid very well,” she says. Figuera adds that base salaries last year increased 2-3 times. Bonuses now make up about 60% of comp, down from as much as 90% a few years ago. “A lot of compensation is already in bankers’ pockets,” she adds. Sales and trading, and investment banking should be among the top earners, according to recruiters. Figuera expects around 30% of bonuses to be paid in stock and the rest cash. “It is not like a couple of years ago, when 50% was stock and there were deferred payments,” she adds.