Banker Bonuses Set to Drop as Tariffs Cause Economic Uncertainty
The outlook for some Wall Street bonuses looks grim, with an expected pullback in payouts after a strong 2024 amid economic turmoil caused by the US trade war and geopolitical tensions.
Investment bankers, hedge fund employees and asset- and wealth-management professionals are all poised to see lower year-end incentive pay in 2025, according to a report Thursday from compensation consultant Johnson Associates Inc. It's a sharp reversal from last year, when payouts swelled and industry profits soared.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
22 minutes ago
- Yahoo
Forget Florida — these two unexpected states are the new retirement hot spots
Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. Retirees are flocking to some states in droves. While their motivations aren't entirely clear, the growing cost of living — especially property taxes — is a likely factor. A John Burns Research and Consulting study ranked states based on their highest and lowest median property tax rates. Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how BlackRock CEO Larry Fink has an important message for the next wave of American retirees — here's how he says you can best weather the US retirement crisis Nervous about the stock market in 2025? Find out how you can access this $1B private real estate fund (with as little as $10) Those who are ready might look to West Virginia and South Carolina — two states standing out as retiree hotspots, with property taxes of under 0.5%. While it can be tempting to save money, retirees should fully understand their finances, including their budget and spending habits, before relocating. This ensures they can afford the move, no matter how financially appealing it may seem. Here's what they offer and what retirees should consider. West Virginia is ranked second best for retirement, just behind Delaware. While an official annual retiree count isn't available, the U.S. Census Bureau reports that as of 2020, the state has a population of approximately 1.8 million, with 22% of the population aged 65 and older. According to the Bankrate study, West Virginia is the most affordable state in the country. But West Virginia's appeal stretches beyond finances. Charleston offers laid-back, scenic mountain living with big-city amenities, as well as a thriving arts and culture scene. West Virginia's affordability also helps residents battle inflation, another sticking point in choosing where to retire. For example, the state has the ninth-lowest average property tax rate in the U.S. (0.55%). Another way to combat inflation is by investing in inflation-protecting assets, like gold. One way to invest in gold that also provides significant tax advantages is to open a gold IRA with the help of American Hartford Gold. Gold IRAs allow investors to hold physical gold or gold-related assets within a retirement account — combining the tax advantages of an IRA with the protective benefits of investing in gold. This makes it an attractive option for those looking to potentially hedge their retirement funds against economic uncertainties. Even better, you can often roll over existing 401(k) or IRA accounts into a gold IRA without tax-related penalties. To learn more, get your free 2025 information guide on investing in precious metals. Qualifying purchases can also receive up to $20,000 in free silver. Of course, no retirement destination is perfect. Challenges in West Virginia include access to health care facilities in rural areas, colder winters with significant snowfall and fewer job opportunities for retirees to supplement their fixed income. Read more: Rich, young Americans are ditching the stormy stock market — South Carolina's affordability has improved since 2023, moving up six spots in Bankrate's study from the previous year. However, the overall cost of living remains above average, at about 95.9% of the national mark. Utility costs contribute to the higher expenses, while housing remains affordable. House prices vary by region, but the state's average home value is around $303,1260 — about 21% below the U.S. average. To bring the cost of homeownership down even further, consider which can help you get great rates to protect your home. All it takes is two minutes for them to comb through over 200 insurers, for free, to find the best deal in your area. The process can be done entirely online. What makes South Carolina stand out is its tax structure. There's no estate tax, Social Security benefits aren't taxed and 401(k) and IRA withdrawals are only partially taxed. With nearly 200 miles of coastline, retirees can also find idyllic communities on islands like Kiawah and Seabrook. While South Carolina's mild winters and sunny summers appeal to many, retirees should consider the region's hot summers (with July highs of 89°F), as well as the risks of hurricanes and flooding. Another potential drawback is the state's relatively high health care costs, ranking 33rd in the study. It's worth considering how to decrease costs on other essentials to compensate for that. For example, makes comparing multiple insurance companies easier than ever. They'll ask you some quick questions then sort through leading insurance companies in your area, ensuring you find the lowest rate possible. The process is 100% free and won't affect your credit score. At the end of the day, there are plenty of factors to consider before you up and move for your retirement. It's about so much more than just finding somewhere with better tax benefits or cheaper rent. To figure out the best decision for your personal circumstances, it might be worth consulting with a financial advisor. With you get a trusted partner that's with you every step of the way in your retirement journey. The platform matches you with vetted financial advisors that offer personalized advice to help you to make the right choices, invest wisely, and secure the retirement you've always dreamed of. Start planning early, and get your retirement mapped out today. JPMorgan sees gold soaring to $6,000/ounce — use this 1 simple IRA trick to lock in those potential shiny gains (before it's too late) This tiny hot Costco item has skyrocketed 74% in price in under 2 years — but now the retail giant is restricting purchases. Here's how to buy the coveted asset in bulk This is how American car dealers use the '4-square method' to make big profits off you — and how you can ensure you pay a fair price for all your vehicle costs Millions of Americans now sit on a stunning $35 trillion in home equity — here's 1 new way to invest in responsible US homeowners This article provides information only and should not be construed as advice. It is provided without warranty of any kind. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23 minutes ago
- Yahoo
RB Global, Inc.'s (NYSE:RBA) Has Had A Decent Run On The Stock market: Are Fundamentals In The Driver's Seat?
Most readers would already know that RB Global's (NYSE:RBA) stock increased by 8.5% over the past three months. We wonder if and what role the company's financials play in that price change as a company's long-term fundamentals usually dictate market outcomes. In this article, we decided to focus on RB Global's ROE. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. In short, ROE shows the profit each dollar generates with respect to its shareholder investments. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Return on equity can be calculated by using the formula: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for RB Global is: 7.2% = US$419m ÷ US$5.8b (Based on the trailing twelve months to March 2025). The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every $1 worth of equity, the company was able to earn $0.07 in profit. See our latest analysis for RB Global So far, we've learned that ROE is a measure of a company's profitability. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Generally speaking, other things being equal, firms with a high return on equity and profit retention, have a higher growth rate than firms that don't share these attributes. On the face of it, RB Global's ROE is not much to talk about. A quick further study shows that the company's ROE doesn't compare favorably to the industry average of 13% either. Although, we can see that RB Global saw a modest net income growth of 16% over the past five years. So, the growth in the company's earnings could probably have been caused by other variables. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. As a next step, we compared RB Global's net income growth with the industry, and pleasingly, we found that the growth seen by the company is higher than the average industry growth of 13%. Earnings growth is an important metric to consider when valuing a stock. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. This then helps them determine if the stock is placed for a bright or bleak future. If you're wondering about RB Global's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. The high three-year median payout ratio of 60% (or a retention ratio of 40%) for RB Global suggests that the company's growth wasn't really hampered despite it returning most of its income to its shareholders. Moreover, RB Global is determined to keep sharing its profits with shareholders which we infer from its long history of paying a dividend for at least ten years. In total, it does look like RB Global has some positive aspects to its business. While no doubt its earnings growth is pretty substantial, we do feel that the reinvestment rate is pretty low, meaning, the earnings growth number could have been significantly higher had the company been retaining more of its profits. The latest industry analyst forecasts show that the company is expected to maintain its current growth rate. Are these analysts expectations based on the broad expectations for the industry, or on the company's fundamentals? Click here to be taken to our analyst's forecasts page for the company. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
23 minutes ago
- Yahoo
With 77% ownership of the shares, The Manitowoc Company, Inc. (NYSE:MTW) is heavily dominated by institutional owners
Institutions' substantial holdings in Manitowoc Company implies that they have significant influence over the company's share price 51% of the business is held by the top 13 shareholders Insiders have bought recently This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. If you want to know who really controls The Manitowoc Company, Inc. (NYSE:MTW), then you'll have to look at the makeup of its share registry. We can see that institutions own the lion's share in the company with 77% ownership. Put another way, the group faces the maximum upside potential (or downside risk). Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute. Let's take a closer look to see what the different types of shareholders can tell us about Manitowoc Company. Check out our latest analysis for Manitowoc Company Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices. Manitowoc Company already has institutions on the share registry. Indeed, they own a respectable stake in the company. This suggests some credibility amongst professional investors. But we can't rely on that fact alone since institutions make bad investments sometimes, just like everyone does. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of Manitowoc Company, (below). Of course, keep in mind that there are other factors to consider, too. Investors should note that institutions actually own more than half the company, so they can collectively wield significant power. We note that hedge funds don't have a meaningful investment in Manitowoc Company. Our data shows that BlackRock, Inc. is the largest shareholder with 12% of shares outstanding. With 9.3% and 5.9% of the shares outstanding respectively, Front Street Capital Management, Inc. and The Vanguard Group, Inc. are the second and third largest shareholders. In addition, we found that Aaron Ravenscroft, the CEO has 1.0% of the shares allocated to their name. A closer look at our ownership figures suggests that the top 13 shareholders have a combined ownership of 51% implying that no single shareholder has a majority. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. The definition of company insiders can be subjective and does vary between jurisdictions. Our data reflects individual insiders, capturing board members at the very least. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it. Insider ownership is positive when it signals leadership are thinking like the true owners of the company. However, high insider ownership can also give immense power to a small group within the company. This can be negative in some circumstances. We can report that insiders do own shares in The Manitowoc Company, Inc.. It has a market capitalization of just US$397m, and insiders have US$14m worth of shares, in their own names. Some would say this shows alignment of interests between shareholders and the board. But it might be worth checking if those insiders have been selling. The general public, who are usually individual investors, hold a 20% stake in Manitowoc Company. While this size of ownership may not be enough to sway a policy decision in their favour, they can still make a collective impact on company policies. It's always worth thinking about the different groups who own shares in a company. But to understand Manitowoc Company better, we need to consider many other factors. Case in point: We've spotted 2 warning signs for Manitowoc Company you should be aware of, and 1 of them shouldn't be ignored. Ultimately the future is most important. You can access this free report on analyst forecasts for the company. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
