Banks “are starting to restructure their pay strategy because five or six years after the crisis they have extra costs,” Johnson said. “It’s just not working.”
“You’re in business to benefit shareholders, so you should ride up and down based on how the stock does,” said Alan Johnson, an executive compensation consultant at Johnson Associates in New York. “We want our executives in America under pressure. That’s a good thing.”
Wall Street bonuses won’t be paid until the beginning of 2016, but the people who track them are already predicting a windfall for the investment bankers who advise companies on corporate combinations. In fact, they’re predicting it’ll be the biggest payout in years. Alan Johnson, one of Wall Street’s top compensation consultants, estimates that overall compensation for mergers and acquisitions bankers could be up by as much as 50% this year.
“Since the financial crisis, their CEO pay has come down, and their median employee pay is generally high,” Alan Johnson, managing director of compensation-consulting firm Johnson Associates, said about financial-services companies. “They don’t have a lot of seasonal workers — they have a lot of full-time versus part-time workers. Their ratios will not be as high as people expect.”
When companies begin to disclose CEO-to-worker pay comparisons in 2017, it could demonstrate that women CEOs have more reasonable ratios. But it may more likely be the case that firms with higher proportions of women employees will have more eye-popping numbers.
“I think that’s likely to be true. The way the ratio is calculated, it’s intended to skew and make companies that employ a lot of part-time workers look worse,” Johnson said. “So I would think in some industries — fashion retailing, fast food, some of the big department stores — they employ not only a lot of women, but a lot of part-time women.”
Global Finance Magazine
…“I think the impact will be relatively small, as I don’t see investors spending a lot of time looking at it,” says Alan Johnson, managing director of Johnson Associates, a compensation consulting firm. “But it will be one more headache for companies, and it will require some additional expenses to comply with.”…
New York Times
…But some say the rules seemed designed more to shame companies and their executives than to provide shareholders with any meaningful insights. “If you are a serious shareholder, you know what the stock has done, and you can come to your own conclusion about whether the C.E.O. is the right leader,” said Alan Johnson, managing director of Johnson Associates, a compensation consulting firm in New York. “The real purpose of these rules was to embarrass corporate America.”…
…While Mr. Fleming was one of the highest paid of his peers, his raise was consistent with brokerage executive pay increases across the board, according to Jeff Visithpanich, a managing director at Johnson Associates, which specializes in executive compensation.
“If you look at just asset management, I would take that to say they thought he did a good to very good job,” Mr. Visithpanich said of Mr. Fleming’s salary. “There are some [raises] higher than 10%, but the middle of the pack is high single digits to 10%….
The Wall Street Journal
…“In good times the generals eat first and the troops eat last,” says Alan Johnson, managing director of compensation consulting firm Johnson Associates Inc. With the crisis still fresh in people’s minds, he says, that dynamic is much less pronounced…
…To compete, Wall Street needs to improve its treatment of workers, says Alan Johnson of compensation consulting firm Johnson Associates.
“The conventional wisdom for 30 years was that if you want to make the most money you go to Wall Street. But now you can make more money in tech, and you can have a more interesting and better culture,” he said.