Wall Street welcomes back fatter bonuses
Subscribe to enjoy similar stories. Wall Street bonuses are on the rise for the first time in three years. How big a pay bump bankers and traders get will depend on the type of work they do.
Those who work in the hot market for bond sales are set to see their bonuses jump by as much as 35%, according to a study by Johnson Associates, an industry pay consultant. Those who help companies sell stock should see increases of 15% to 25%, on average, with stock traders receiving raises of up to 20%. “If you’re in the securities industry, you better be pretty optimistic," said Alan Johnson, the firm’s founder.
“Most of these firms will communicate a positive message: ‘We’re on an uptick and climbing the hill, and we’re halfway there. We expect to go even further next year.’" Bonuses often make up a big chunk of pay for employees at financial firms, and for many had dropped the past two years after higher interest rates and uncertainty over the economy weighed on the industry. The outlook brightened this year with a modest pickup in deal making, a vibrant market for corporate bonds and loans and a rallying stock market.
Many on Wall Street hope 2025 will be even better. President-elect Donald Trump’s return to the White House should stimulate the economy and fuel deal making through tax cuts and lighter regulations, Johnson said. Johnson’s analysis was based on the consultant’s interviews with clients and industry contacts, along with publicly available and private data.
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