Home News Wall Street Set for Bonus Windfall as Bankers Anticipate Up to 35% Increase in Year-End Payouts

Wall Street Set for Bonus Windfall as Bankers Anticipate Up to 35% Increase in Year-End Payouts

Wall Street Set for Bonus Windfall as Bankers Anticipate Up to 35% Increase in Year-End Payouts

As industry forecasts indicate a significant uptick, bankers across Wall Street are bracing for higher year-end bonuses, marking a notable shift from recent trends. After a couple of lean years, incentive compensation is projected to rise, with

The New York Post

reporting a possible increase of up to 35% for some sectors. This uptick is attributed to a resurgence in deal-making activities, with debt underwriters at the forefront of these gains.

Traders are not being left behind in this positive shift, with bonuses for equity traders expected to jump 15%, while their counterparts in fixed-income may see an increase of 10%. Furthermore, wealth management and asset management professionals are also anticipated to have a brighter end-of-year payout, with incentives ranging between 5% and 10% higher than the previous year. Alan Johnson of compensation consultancy Johnson Associates described the bonuses as reflective of the current market state, claiming, “Wall Street had a couple of difficult years. But it has certainty not got back to 2021 levels,” in a statement obtained by

The New York Post

.

According to

Crain’s New York Business

, the bullish outlook spreads across most sectors in the financial industry. Bankers in advisory roles could see their bonuses grow by up to 10% as merger-and-acquisition activity regains momentum. The increased confidence comes despite potential changes with a new US president and economic uncertainties.

However, not all sectors can expect a similar windfall. Retail and commercial bankers might experience stagnation or a minor decline in their incentive pay, potentially dropping by as much as 5%. Johnson Associates speculate that this could be influenced by lending activity dips, and higher provisions for credit losses, amidst market volatility and a high level of economic uncertainty. “We have climbed part of the hill in 2024, and people will be rewarded for that,” Alan Johnson assured, an insight from

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Crain’s New York Business

.

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