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It’s a tale of two Wall Streets.

Hundreds of thousands of junior bankers are cutting back after their bonuses were a bust this year.

But the very top of the 1% is living large thanks to the stock market surging and Bitcoin soaring meaning their inflation-beaten bonuses didn’t affect their wealth.

Official figures show that the average Wall Street bonus for 2023 was $176,500, compared to $180,000 for 2022. Thanks to inflation, that 2% decline is even more painful.

Given roughly 1 in 11 people in New York is employed in some capacity by a financial firm, according to data from the comptroller, any changes in Wall Street compensation can have an outsized impact on the rest of the city.

Bonuses are doled out at the end of the year and typically make up the majority of someones total compensation.

For instance, a managing director at a top firm could make a salary of $500,000 or more and in a good year nab a bonus of a million dollars or more.

But a first or second year analyst at a top firm who makes around $110,000 in salary saw their bonus fall as low as $30,000 or even zero compared to the $100,000 they expected.

And vice presidents at large firms whose salaries are usually between $200,000 and $250,000 and who had expected at least the same in bonus are also complaining that they have been getting closer to $100,000. After tax, the bonus is just over $50,000.

One vice president at a large firm who has a one bedroom in the West Village, albeit a walkup, said after receiving even less this year than he did last year, he has tried to scale back the number of times he eats out to two nights a week instead of three or four.

At his favorite spots Carbone where branzino costs $95, Dantes where veal Milanese is $60 and Saint Theos where lamb chops are $68 a dinner tab can quickly balloon to $300 or more and a drinks tab can easily hit $100 for a date. 

Hank Medina, who runs social media account Litquidity, with more than 840,000 followers on Instagram, said junior employees had a brutal year” and are re-evaluating a career in finance.

Medina told The Post he has gotten hundreds of messages from junior bankers saying they “are unhappy and are going to leave” as a result of the stingy payout.

Some executives who’ve spent decades on Wall Street said they are sympathetic to younger employees who worked hundred hour weeks in the hopes of getting a big payout only to be stiffed.

“First year employees are only making a $100,000 salary in New York City. They rely on a decent bonus to pay their rent,” a source in his 60s, who has been working as a banker for four decades, said.

The source, who noted the median Manhattan rent is $4,257 according to a StreetEasy study from February said he “felt for the kids.”

While these senior executives may pity the rank-and-file, many of them are celebrating their own financial wins.

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Those who have spent decades in finances saw their personal assets which are often in the tens of millions yield more profit than they wouldve made on a bonus in a good year, sources told The Post.

Over the last year, the S&P 500 has climbed 30%, the Nasdaq index has soared 38% and Bitcoin – which some of the richest have invested in has jumped 159% to more than $73,000 at its apex.

The wealthiest are also benefiting from some deflation.

For instance, chartering a Gulfstream at the height of covid was $15,000 an hour whereas now its closer to $12,000 an hour.

But the bonus malaise was enough to push some executives to cut back where they could.

Kaye Gitibin — CEO of luxury car service Go Rentals that will deliver a swanky car directly to customers at private jet terminals and yacht marinas so they don’t have to deal with a regular rental service said people won’t give up luxury and convenience but want to cut costs where they can.

If a client was renting a Range Rover HSE a few years ago theyre now renting a Range Rover sport which is $50 less a day, Gitibin said. If they were renting an Escalade they’re now renting a Denali.

This year people are now going on a ski weekend five or six times not seven or eight times — and staying at home the other weekends, Doug Gollum, founder and editor of Private Jet Card Comparisons, a buyer’s guide to jets said.

Jim Murren, CEO of Ritz-Carlton’s “yacht collection” which offers high-end cruises starting at $2,000 a day and is fully booked through the summer said people are still prioritizing spending on vacations but are paring back in other areas.

What weve learned is people are spending money differently, he told The Post. Consumables have been negatively impacted by a small bonus pool but the desire for experiences has not been impacted.

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Business

Ex-Post Office head of IT says Paula Vennells ‘hoped to avoid’ inquiry – and reveals she blocked her number

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3 hours ago

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May 16, 2024

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Ex-Post Office head of IT says Paula Vennells 'hoped to avoid' inquiry - and reveals she blocked her number

A former Post Office executive has said she was forced to block ex-boss Paula Vennells’ phone number after the ex-CEO called multiple times asking for help to avoid an independent inquiry into the Horizon IT scandal.

Lesley Sewell, previously the company’s head of IT, told the Post Office inquiry on Thursday that former CEO Ms Vennells had reached out to her four times between 2020 and 2021.

Ms Sewell said that she blocked Ms Vennells’ number due to discomfort with the contact.

In her witness statement to the probe, Ms Sewell said that one of Ms Vennells’ emails referenced the need to fill in memory gaps regarding Horizon and “Project Sparrow”, a committee addressing issues with forensic accountants who identified flaws in the accounting system.

“Paula contacted me on four occasions in total. I recall blocking her number after the last call as I did not feel comfortable with her contacting me,” Ms Sewell said.

“I had not spoken to Paula since I had left POL [Post Office Limited] in 2015.”

Lesley Sewell giving evidence to the Post Office inquiry. Pic: PA
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Lesley Sewell giving evidence to the Post Office inquiry. Pic: PA

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According to Ms Sewell’s testimony, former chief executive Ms Vennells said that she had “been asked at short notice” to appear before a parliamentary select committee on “all things Horizon/Sparrow and need to plug some memory gaps”.

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Ms Sewell says Ms Vennells added: “My hope is this might help avoid an independent inquiry but to do so, I need to be well prepared.”

Ms Sewell, who struggled to contain her emotions and broke down in tears while giving her oath at the start of her inquiry evidence, was offered support and breaks as needed by chairman Sir Wyn Williams.

Sir Wyn told the former executive: “Ms Sewell, I appreciate this may be upsetting for you, Ms Price will ask you a number of questions in a proper and sensible manner, but if at any time you feel you need a break, just let me know, all right?”

Lesley Sewell taking the oath at the Post Office inquiry. Pic: PA
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Lesley Sewell taking the oath at the Post Office inquiry. Pic: PA

The Post Office has faced significant scrutiny following the ITV drama Mr Bates Vs The Post Office which highlighted the Horizon IT scandal.

The faulty system led to the prosecution of more than 700 sub-postmasters between 1999 and 2015, with many still awaiting full compensation despite government announcements regarding payouts for those with quashed convictions.

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Environment

VinFast (VFS) secures nearly 30K pre-orders for new $10,000 VF 3 in under three days

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4 hours ago

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May 16, 2024

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VinFast (VFS) secures nearly 30K pre-orders for new ,000 VF 3 in under three days

VinFast-VF-3-pre-orders

In under 66 hours after launching its new low-cost electric SUV, VinFast’s VF 3 racked up nearly 30,000 pre-orders. Starting under $10,000 (235 million VND), the VinFast VF 3 is already creating a buzz. Following the special price promo, the VF 3 will cost around $20,000.

Meet the new low-cost mini electric SUV

VinFast revealed the affordable VF 3 at CES 2024 in January, announcing plans to launch the mini electric SUV globally, including in the US.

The VF 3 aims to “unbound the imagination of urban mobility that is not only sustainable but also accessible for everyone,” according to Ms. Tran Mai Hoa, VinFast’s deputy CEO of sales and marketing.

In other words, VinFast looks to meet the growing demand for low-cost EVs globally. VinFast designed the compact electric SUV for cruising through the city.

At 125.6″ long, 66.1″ wide, and 63.8″ tall, the VF 3 is even smaller than Volvo’s new EX30 (167″ long X 72″ wide X 61″ tall).

The electric SUV is equipped with a 10″ infotainment with Android Auto and Apple CarPlay compatibility. With the second-row seats fully folded, the VF 3 offers up to 550 liters of cargo space.

VinFast-VF-3-pre-orders
VinFast VF 3 (Source: VinFast)

VinFast VF 3 racks up close to 30,000 pre-orders in 66 hrs

After announcing it was accepting early deposits for the VF 3 last week, VinFast says the electric SUV is already creating hype.

VinFast revealed the VF 3 received 27,649 pre-orders within 66 hours of launching, a new record for a Vietnamese automaker.

The VF 3 is already a “social media phenomenon in Vietnam,” topping trend rankings ahead of its global debut. With the low-cost special introductory price of $9,248 (235 million VND), the mini electric SUV is already making a big impact.

VinFast-$20,000-electric-car
VinFast VF 3 interior (Source: VinFast)

The special price (235 million VND) is for the battery subscription model. With the battery included, the VF 3 can be ordered for 315 million VND ($12,390). The promotion ran from May 13 to May 15.

VinFast says paying for the VF 3 upfront costs only half the price of the cheapest gas car currently available in Vietnam.

VinFast-VF-3
VinFast VF 3 (Source: VinFast)

Otherwise, buyers need only 50 to 70 million VND ($1,965 to $2,750) for a down payment. The rest can be financed with monthly payments of just over 2 million VND ($78.5) over eight years.

For the first time in Vietnam, VinFast sold the VF 3 on e-commerce platforms like Shopee, resulting in over 50% online orders.

VinFast-VFS-stock-chart
VinFast (VFS) stock chart (Source: TradingView)

VinFast (VFS) stock is up 8% on Thursday and 44% over the past month. However, VFS shares are still down 34% this year and over 90% from their ATH last August, shortly after going public.

Electrek’s Take

VinFast has already announced plans to sell the VF 3 globally, including in the US. However, the $10,000 (235 million VND) promo price was a special offer. The VF 3 will cost around $20,000 in Vietnam.

Although these are pre-orders, it’s still a sign of demand for low-cost EVs. If the demand is high in Vietnam, it should be interesting to see how many pre-orders the VF 3 racks up in other global markets like Europe, North America, and Asia.

Would you buy the VF 3 for $20,000? Let us know your thoughts in the comments below.

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Politics

Regulatory crackdown spawns anti-SEC ‘CultureCoin’

Published

4 hours ago

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May 16, 2024

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<div>Regulatory crackdown spawns anti-SEC 'CultureCoin'</div>

Creators of NotWifGary aim to “stand [their] ground against Gary Gensler and the SEC” in support of Ethereum and open-source developers.

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