Don't look now, but Wall Street bonuses are already trending in the wrong direction
Hiya! Dan DeFrancesco in NYC, and I am pumped for the return of the all-you-can-eat buffet.
Today, we've got stories on the biggest takeaways from the Berkshire Hathaway annual shareholders meeting, an elegy for the now-dead metaverse, and the best-paying jobs that don't require a four-year degree.
But first, some bad news.
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1. Bonus Bummer.
Wall Street, I'm sorry to say your 2023 bonus is already on some shaky ground.
I realize we're not even halfway through the year, but after an awful first quarter, bonuses in plenty of areas of finance are trending in the wrong direction.
Insider's Emmalyse Brownstein has the breakdown on a recent report from compensation consultant Johnson Associates offering predictions on where year-end bonuses will end up compared with 2022.
It's a mixed bag, with some areas trending toward a double-digit percentage increase over 2022, while others are heading the opposite way. Many areas, though, seem likely to remain flat. That might not sound bad, but remember just how awful 2022 was for bonuses. For more on the 2023 bonus predictions, click here.
Another year of subpar bonuses does make me wonder if we'll start to see a change in the type of talent entering the industry. Contrary to what some will have you believe, money has always been a key factor for those pursuing a career in finance. If that isn't a certainty, you can bet people, especially those earlier in their career, will look for greener pastures.
To be sure, Wall Street has navigated plenty of crises and always bounced back. But it does feel like this time it's a bit different. Previous alternatives for finance folks — like fintech and digital currencies — are having their own moment of reckoning and are no longer the reliable bets they once were.
The most obvious trend ex-Wall Streeters could jump on is artificial intelligence. That field, however, requires the type of complex, technical know-how that isn't common among front-office finance employees.
But as the costs continue to mount in AI, and as Silicon Valley looks for a way to keep investors happy, perhaps that's the perfect place for them to land.
Read more about what you can expect in terms of your 2023 bonus.
In other news:
2. Warren Buffett and Charlie Munger sound off. From AI to the US economy to commercial real estate, these are the 10 biggest takeaways from Berkshire Hathaway's annual meeting. Read more here.
3. When it pays to snitch. The SEC gave out its largest award to a whistleblower — nearly $279 million — earlier this month. Inside the crazy world that is whistleblower lawsuits and the massive payouts awarded.
4. No-fee VC! Jon McNeill, who was president of Tesla and COO of Lyft, thinks VC firms have an "addiction to fees." Now he's trying to upend the system by eliminating management fees at his own fund, DVx Ventures. More on how he's doing it.
5. Big Oil has a whole lot of cash and nowhere to put it. Six of the largest European and US oil companies have a combined nearly $160 billion in cash and cash equivalents on their balance sheets, The Wall Street Journal reports. Here's what they are planning on doing with all that extra dough.
6. Welp, the metaverse was fun while it lasted. The digital world that was the talk of the town just a few years ago is now essentially dead. Where did it all go wrong?
7. A dispute over a driveway ended up costing someone more than $200 million. Billionaire investor Louis Bacon, who founded hedge fund Moore Capital Management, was awarded $203 million from disgraced fashion mogul Peter Nygard in a defamation case. The fight, which stemmed from Nygard's use of Bacon's driveway, led to the biggest defamation settlement in New York history. Here's how things got so nasty.
8. The ultra-rich are ready to start investing again. A survey from Goldman Sachs of family offices found they are keen to invest in both stocks and private equity, Bloomberg reports. More on the deals they are eyeing.
9. No four-year degree? No problem! Lots of people say college doesn't pay, but for these jobs it literally doesn't. We mapped out 26 gigs where you can make more than $80,000 a year and don't need a bachelor's degree. Happy job hunting.
10. How to backpack Europe on a budget. New college grad looking to "find yourself?" Overworked millennial who's over the corporate rat race? Whatever your situation, maybe travelling across Europe can help. (It probably won't hurt.) Here's how you can do it without breaking the bank.
Curated by Dan DeFrancesco in New York. Feedback or tips? Email ddefrancesco@insider.com, tweet @dandefrancesco, or connect on LinkedIn. Edited by Jeffrey Cane (tweet @jeffrey_cane) in New York and Hallam Bullock (tweet @hallam_bullock) in London.