Steven Eckhaus, Chair of the firm’s Executive Employment Practice, was quoted in the Wall Street Journal and several other sources on compensation, bonuses and unemployment in the financial services sector. Although Wall Street pay is on pace to break a record high for the second consecutive year, the Journal reports, firms are still waiting for the specific rules mandated by the Dodd-Frank financial reform legislation to be written. “The current wave of regulation is helping keep compensation relatively flat," says Mr. Eckhaus. (“Wall Street Pay: A Record $144 Billion,” October 11, 2010)
ABCnews.com, Fox News and NPR report that despite increased tax rates in 2011, most Wall Street banks don’t plan to pay out bonuses before the end of 2010. Industry observers expect layoffs in the coming months, and Mr. Eckhaus notes, “It's very hard to justify laying off workforce at the same time as accelerating bonuses. It's a public relations disaster.” (“Not Many Early Bonuses for Wall St Banks: Experts,” October 12, 2010)
An article in the Los Angeles Times discloses that financial analysts have slashed earnings estimates, firms are quietly firing staff and many more layoffs are expected. "We're going to see a larger increase in unemployment in the financial services than anyone had expected," Mr. Eckhaus predicts. ("Wall Steet Feeling Some of Main Street's Economic Woes," October 13, 2010)