Despite Turmoil, Wall Street Bonuses Survive

Firms are also under pressure to pay bonuses to keep some workers from walking across the street to a rival. And then there are the sign-on bonuses banks paid so far this year. Merrill's John Thain was particularly active at that game. He snagged Thomas Montag, a star Goldman trader, with a promise of a $39 million sign-on bonus for this year. Montag could get millions more, too, in stock if he leaves in Merrill's change of control.

Banks may not have to pay up as much to retain lower-level worker bees, because there are simply fewer competitors to snatch them away. Bear Stearns and Lehman are gone, Merrill is being merged into Bank of America, and hedge funds, the greener pastures of the last few years, are also ailing.