Wall Street bonuses will rise for the first time since 2021, consultant says

By Tatiana Bautzer

NEW YORK (Reuters) - Wall Street firms are expected to pay heftier bonuses for this year, the first increase since a bumper year in 2021, according to a report by compensation consultancy Johnson Associates.

Payouts will probably rise after financiers benefited from several factors in recent months: a recovery in dealmaking, the Federal Reserve cutting interest rates and equity markets surging to record highs, said the consultancy's founder, Alan Johnson.

"This year has been surprisingly good, and the industry is quite optimistic about 2025, especially with the potential of announcing more M&A deals," he said, referring to mergers and acquisitions.

While bonuses will be more generous, they will remain below the record levels from 2021, when revenue and compensation were "abnormally good," Johnson said.

Investment bankers in debt underwriting are projected to receive the biggest surge in bonuses of 25% to 35% for 2024, the estimates showed, buoyed by a resurgence of activity. Their counterparts in equity capital markets will likely get boosts of 15% to 25%.

Meanwhile, a slower recovery for M&A will result in more modest bonus increases of 5% to 10% for bankers advising on transactions.



Traders will also reap a windfall from more volatility and rising equities, the report showed. Equity sales and trading professionals can expect their bonuses to climb about 15% to 20%, while in fixed income, payouts will probably rise 5% to 10%.

But not all bankers will share in the recovery, the consultant said. Bonuses for retail and commercial bankers will probably decline or stay flat for the year.

Source: Investing.com

Последние публикации
Lender Banco do Brasil posts 8% profit increase, higher loan-loss outlook
14.11.2024 - 01:00
Major Apple supplier Foxconn expected to report strong Q3 results on AI boom
14.11.2024 - 01:00
B. Riley delays Q3 report, warns of loss from Franchise bankruptcy
14.11.2024 - 01:00
US regulators warn bankers about intensified focus on financial crime
14.11.2024 - 01:00
After-hours movers: Cisco, DLocal, CNH Industrial and more
14.11.2024 - 00:00
Bankman-Fried lieutenant builds fraud detection tool for prosecutors
14.11.2024 - 00:00
US Bank CEOs express confidence in deals, consumer finances
14.11.2024 - 00:00
Bank CEOs express confidence in deals, consumer finances
13.11.2024 - 23:00
Wall Street ends mixed while inflation data keeps Fed rate-cut hopes intact
13.11.2024 - 23:00
Cisco earnings beat by $0.04, revenue topped estimates
13.11.2024 - 23:00
Stock Market Today: S&P 500 ekes gain as yields rebound to cool recent rally
13.11.2024 - 23:00
Exclusive-Trump's team drawing up list of Pentagon officers to fire, sources say
13.11.2024 - 23:00
Colombia stocks lower at close of trade; COLCAP down 0.56%
13.11.2024 - 23:00
Canada stocks higher at close of trade; S&P/TSX Composite up 0.26%
13.11.2024 - 23:00
Russia stocks higher at close of trade; MOEX Russia Index up 0.35%
13.11.2024 - 23:00

© Analytic DC. All Rights Reserved.

new
Анализ рынка Как повлият завтра отчет NFP на курс доллара США?