Bonus watch 2008: A new report says they could get nailed

Duh. 

Reuters tells us that a new report out of compensation consultants Johnson Associates indicates that bonuses this year could be pretty slim, contracting from 10 - 25%, and possibly 35% in the executive suite. (We sadly note the obvious -- that if you're unemployed they also could be nonexistent.)

The credit crisis will mostly affect bonuses for workers directly involved in trading and selling assets like subprime mortgage bonds, the report said.

Senior executives will likely face the biggest bonus cuts and may even find their pay linked to risk exposure, the report said. Banks may also implement what the report referred to as "clawbacks" -- managers to pay back compensation money if certain results are not met, the report said.

The Johnson Associates report said investment bankers could see bonuses decrease percent 15 to 25 percent as a deal drought has slowed business.

Equity traders might fare a better as increased market volatility improves margins. Equity trading bonuses are predicted to drop off 10 percent to 15 percent, according to the report.

The reports estimated that cuts in bonuses for some fixed income traders could amount to more than 25 percent depending upon market conditions.

Wall Street bonuses could slide in 2008: report - Reuters