Silver lining

21 October 2010 By Antony Currie Follow @AntonyMCurrie

Sure, a slow year and ongoing public scrutiny has pushed bonus accruals down. But bank shares have tumbled, too. With stock a larger portion of compensation, even if the rest of 2010 disappoints, investment bankers stand to benefit financially from a longerterm market recovery.

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Investment banking compensation for the first nine months of the year lags the same period last year at Goldman Sachs, JPMorgan and Morgan Stanley.

Goldman Sachs set aside $13.1 billion in the first three quarters of the year, compared with $16.7 billion by the same point last year, which equates to a 22 percent decrease. The firm's headcount has also increased 11.6 percent.

JPMorgan's investment bank has set aside $7.9 billion so far in 2010, 9 percent less than last year's $8.8 billion. Staffing has increased 6.2 percent.

Morgan Stanley's compensation pool for the year to September stands at $5.3 billion, 7 percent less than last year. The firm does not break out headcount at the investment bank, but has also been hiring this year.

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