Question for those in banking

[maldorf]

My wife is a banker and usually gets a very substantial yearly bonus around March. This year of course things are going to be different, and there will be no cash bonus at all. Nothing but some stock in the bank and a very small amount at that. The dollar amount is about 1/8 of what she usually gets. The stocks dont vest until 5 years either. To top is off, they are only getting a 1% cost of living adjustment. I suppose in these hard times we are just both grateful that she still has her job, but it doesnt make it any easier to swallow. We dont need the bonus money to live off of, but it was what we used for luxuries like new furniture and home improvements. Not only that but it was used for saving for our children's college education and some retirement. Now that is all gone.
How many of you out there in banking are experiencing the same thing?

[Sassy]

I'm sure it is hard to swallow. My brother is a financial planner and not only has his territory been cut back but his commissions were cut as well.

If you look at every industry across the country, everyone is in the same boat. Here in TN teachers and other government employees are being ask to take a 3% pay cut. At Christmas we had to laid off all of our employees because we have no work at right now. The first 5 months of last year Everlast's went with no business at all. We were blessed that things picked up at the end of the year. We come out down 65%, but we both feel blessed that we made it through this year with out filing bankruptcy.

Hang in there... we all have to hope that this is the bottom and things will start getting better.

[maldorf]

Originally Posted by Sassy

I'm sure it is hard to swallow. My brother is a financial planner and not only has his territory been cut back but his commissions were cut as well.

If you look at every industry across the country, everyone is in the same boat. Here in TN teachers and other government employees are being ask to take a 3% pay cut. At Christmas we had to laid off all of our employees because we have no work at right now. The first 5 months of last year Everlast's went with no business at all. We were blessed that things picked up at the end of the year. We come out down 65%, but we both feel blessed that we made it through this year with out filing bankruptcy.

Hang in there... we all have to hope that this is the bottom and things will start getting better.

Its tough going but I have optimisim that it will pass. Like you expressed, we are just glad that she didnt lose her job. She just started at this bank back in April too. The other bank that she had been with for over 10 years closed down the entire comercial realestate market dept back in Dec 07. That was Chase Bank too, and they faired fairly good through all of this.

[jawbreakerkid]

I feel like I'm following you around here...lol...a good friend of mine is a VP at a regional bank here in the Chicago area. Bonuses are tied to performance for commercial lenders and with the new underwriting guidelines in lending across the board, bonuses are next to impossible to meet. One thing that puts it all into perspective, he actually told me that management is incentivizing getting real estate loans out of their portfolio by referring clients to other banks who will possibly refinance the deal. So in order to earn bonuses, send your clients to the competition to bail us out of our liquidity issues, unreal.

Internally people were complaining about not receiving bonuses this year, my buddy laid it out the same way you're thinking, be thankful you have a job!

It will be awhile before banking is business as usual, this problem is so far reaching and we haven't begun to see the widespread commercial and industrial defaults that are inevitable with the lax underwriting guidelines of the past 3-4 years.

[maldorf]

Originally Posted by jawbreakerkid

I feel like I'm following you around here...lol...a good friend of mine is a VP at a regional bank here in the Chicago area. Bonuses are tied to performance for commercial lenders and with the new underwriting guidelines in lending across the board, bonuses are next to impossible to meet. One thing that puts it all into perspective, he actually told me that management is incentivizing getting real estate loans out of their portfolio by referring clients to other banks who will possibly refinance the deal. So in order to earn bonuses, send your clients to the competition to bail us out of our liquidity issues, unreal.

Internally people were complaining about not receiving bonuses this year, my buddy laid it out the same way you're thinking, be thankful you have a job!

It will be awhile before banking is business as usual, this problem is so far reaching and we haven't begun to see the widespread commercial and industrial defaults that are inevitable with the lax underwriting guidelines of the past 3-4 years.

Yeah, youre stalking me! Youre right though, and I know it deep down inside but dont want to admit it. The days of her getting that huge bonus are maybe gone forever. Im just glad I didnt figure out budget depending on that bounus. We have always been sure to figure that bonus as luxury money. Things are going to be really tight now though.
Guees we should be glad she is getting a bonus at all. Being a VP she is getting one but I am pretty sure the underwriters and others arent getting a dime.
A bit off topic here. I used to teach and her bonus was more than what I made teaching the whole damn year! So I stayed at home to raise my two girls. My youngest is going into kindergarten next year and so I am going to look at going back to work. Going to be hard to find a job in this environment, especialy after being out of the workplace for 7 years.
Not sure I want to go back into teaching either.

[Sassy]

Originally Posted by maldorf

Yeah, youre stalking me!

at least he's pretty much harmless... an if you tap him on the noise once he'll back off

[dancinfool]

I am an assistant manager at a very solid, growing bank in MA. We find out about our yearly bonus a week from Tuesday...We had a great year revenue-wise which is more than most institutions can say for 2008. When banks were closing, we purchased one adding 11 new branches this year (20 new branches since 2007). That being said, I am still very anxious to see what they will give us. Last year was an extremely profitable year for the bank and the bonus was still not what it has been in the past. This year revenues were down a little from '07 so I have no idea what to expect. The industry is in such disarray that nothing is predictable.

[Steve123]

I've got 15 years in the Employee Benefits Management business, mostly 401k plans. I can tell you that even financially stable companies are firing (laying off) workers. Having a job right now in any Financial Services Facing business is a good thing.....pay cuts and low COLA's notwithstanding.

The good news is this: Businesses whose revenues are pinned to Financial Markets will be the first to rebound - e.g., Equity markets are a leading Economic indicator. They bounce before the ecomony turns.

[mikeheavypecs]

Originally Posted by maldorf

My wife is a banker and usually gets a very substantial yearly bonus around March. This year of course things are going to be different, and there will be no cash bonus at all. Nothing but some stock in the bank and a very small amount at that. The dollar amount is about 1/8 of what she usually gets. The stocks dont vest until 5 years either. To top is off, they are only getting a 1% cost of living adjustment. I suppose in these hard times we are just both grateful that she still has her job, but it doesnt make it any easier to swallow. We dont need the bonus money to live off of, but it was what we used for luxuries like new furniture and home improvements. Not only that but it was used for saving for our children's college education and some retirement. Now that is all gone.
How many of you out there in banking are experiencing the same thing?

hey Bro! Good to see you posting. Well, I'm not in the Banking industry, but a similar industry. Every March we are used to getting a VERY sizable bonus. Last Nov our COO announced NO BONUS nor merit raises until the economy turns around. Upper management now is actually saying "be glad you still have a job" when it comes to performance reviews. I think this is happening to ALL sectors of Industry!! We are lost also since we are used to the March bonus.

Mike

[Steve123]

Originally Posted by mikeheavypecs

hey Bro! Good to see you posting. Well, I'm not in the Banking industry, but a similar industry. Every March we are used to getting a VERY sizable bonus. Last Nov our COO announced NO BONUS nor merit raises until the economy turns around. Upper management now is actually saying "be glad you still have a job" when it comes to performance reviews. I think this is happening to ALL sectors of Industry!! We are lost also since we are used to the March bonus.

Mike

Mike, I know it wasn't directed to me but I feel your pain. I actually just accepted a 10% pay cut this week and there is about a 50/50 chance I'll be laid off next week. Like your COO says, these days having a job is where it's at. The good news is that I really think we're at the tail end of the storm. People that I talk to who actually know this stuff tell me that by 4th quarter we should be seeing some light on the horizon.

[maldorf]

Originally Posted by mikeheavypecs

hey Bro! Good to see you posting. Well, I'm not in the Banking industry, but a similar industry. Every March we are used to getting a VERY sizable bonus. Last Nov our COO announced NO BONUS nor merit raises until the economy turns around. Upper management now is actually saying "be glad you still have a job" when it comes to performance reviews. I think this is happening to ALL sectors of Industry!! We are lost also since we are used to the March bonus.

Mike

So widespread a problem. I hope we never see the likes of this again in our lifetime. Ill probably hold off on investing in the states college savings plan for our kids, all of those funds are tanking. thats one thing we used to use the bonus for. We had planned on using most of the bonus to build a patio and screened in deck for our new home, thats a pipe dream now.