Wall Street elite make ends meet with $350K salary
Sarah Beth Hensley, WCPO Digital
11:38 AM, Mar 13, 2012
7:39 AM, Mar 14, 2012
NEW YORK - While many people around the country are struggling to make ends meet, a group of high-income professionals is fighting to maintain their lifestyle with less money: an income that is roughly $350,000.
An article from Bloomberg covers bonus reductions at some Wall Street companies and the uphill battle their luxury-indulging employees face as a result of those cuts.
Brooklyn resident Andrew Schiff, a 46-year-old director of marketing for broker-dealer Euro Pacific Capital Inc., is having to scale back after he was paid a lower bonus this year. His $350,000 salary, which puts him in the country's top 1 percent by income, doesn't cover his kids' private-school tuition, summer rental and addition in his Brooklyn duplex.
Smaller bonus checks were seen across the financial-services industry in February as many Wall Street firms trimmed 2011 discretionary pay. Many of the firms saw a decrease in revenue from investment banking and trading, which takes a toll on employees' bottomline.
What seems like a small paycheck to these employees may be extreme wealth to the rest of the country. The median household income in 2010 was $49,445, according to the U.S. Census Bureau.
Although it may seem like a lot of money, most people on Wall Street don't save, said Richard Scheiner, a 58-year-old real-estate investor and hedge-fund manager in New York. Scheiner, who spends $17,000 between his two dogs, said in the article he is doing OK after his Lane Gate Partners LLC hedge fund was down 15 percent last year.
Schiff, on the other hand, is making sacrifices he didn't anticipate. He says his two children have to share a room and he doesn't have space to expand and add a dishwasher to his kitchen.
"I feel stuck," Schiff said in the article. "The New York that I wanted to have is still just beyond my reach."