The End of the Bonus Culture Is Coming to Wall Street

Posted by Ed 22 mths ago

Chris Purves has been at the cutting edge of markets for more than a decade – from algorithmic trading to machine learning.

Now the head of UBS Group AG’s Strategic Development Lab is turning his focus to the human survivors of the tech invasion, persuading them to understand things will never be the same. They’re going to have to -- in the jargon of Silicon Valley’s missionaries -- “unlearn” how they’ve always operated.

It’s not just that their software may know their next move before they do. The extinction of an entire way of life is looming, as Purves sees it: the end of the bonus culture.

Compensation will be a last frontier in the onslaught of technology on finance.
The mismatch between skills and demands is putting even the industry’s highest-paying jobs at risk, says Marcos Lopez de Prado, the former head of machine learning at the hedge fund AQR Capital Management LLC and now a Cornell University professor.
Many of the 6.1 million people employed in finance and insurance will lose their jobs “not necessarily because they are replaced by machines, but because they are not trained to work alongside algorithms,” he told the U.S. House Committee on Financial Services in December. 

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