"Wall Street’s dealmakers may see bonuses for 2022 drop as much as 40% as initial public offerings and underwriting businesses continue to slow. That’s according to the latest projections by Alan Johnson, managing director of the compensation consultancy Johnson Associates Inc. This year’s once-in-a-generation levels of inflation will also weigh on pay ..." - Bloomberg, May 5, 2022
Haircuts are not the only bad news for dealmakers. In addition, Johnson projects that war for talent will slow. There could be actual reductions-in-force.
Slowdowns for dealmaking could also deliver a hit to law firms. If they don't have other lucrative transactional practices, in addition to those linked to M&A, they could be forced to lay off. That shift from bulking up with manpower as demand outstripped capacity to the not-enough-work state of affairs could happen abruptly.
Connect with Editor-in-Chief Jane Genova at janegenova374@gmail.com.
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