Wall Street employees are expected to see their bonuses jump for the second consecutive year, driven by market volatility that has fuelled trading demand and the long-awaited resurgence of dealmaking. Investment bankers, traders, and wealth management professionals are all anticipated to receive higher year-end incentive pay, according to a recent report from compensation consultant Johnson Associates.
Equity traders, who assist investors in positioning their stock bets, are likely to experience the most significant gains, with potential payout increases of up to 25 per cent. This surge is primarily attributed to the heightened market swings observed throughout the year. Alan Johnson, managing director of Johnson Associates, noted the unusually positive climate across all sectors, citing the resilience of the economy and financial markets, which has benefited banks due to continued volatility.
Specifically, the report indicates that bonuses for equity traders could rise by 15 per cent to 25 per cent. Fixed-income traders, on the other hand, are projected to see a more modest increase of 5 per cent to 15 per cent. These projections align with other industry reports, which also anticipate equity traders receiving the largest bonus increases. Earlier this week, recruitment firm Options Group predicted that stock traders’ bonuses would be almost 14 per cent higher than last year’s pool.
Johnson Associates is a compensation consultant firm which provides insights into pay incentives and structures. Options Group is a global recruiting firm specializing in financial services and technology. Their recent reports and analyses highlight the positive outlook for Wall Street bonuses in the current financial environment.
