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Wall Street Bonuses Expected To Decline This Year

Year-end bonuses across Wall Street are expected to decline this December as dealmaking remains weak and stock trading continues to be volatile.

Bonuses for investment bankers who advise companies on mergers and acquisitions are expected to decline by 15% to 25% this year from 2022 levels, according to a study conducted by Johnson Associates, a compensation consultant based in New York City.

Retail bankers at regional banks will likely receive bonuses that are 10% to 20% lower than last year, the report indicates.

While bonuses are expected to mostly be down this holiday season, there are some exceptions. Investment bankers working in equity underwriting are projected to receive payouts that are 5% to 15% higher than in 2022.

Also, wealth managers could receive lump sum payouts that are 5% higher than last year. Retail bankers at large institutions could also see year-end bonuses stay flat or rise about 10%.

Bonuses for debt underwriters and finance professionals working in fixed income, hedge funds, and at private equity firms are all expected to receive about the same bonuses as in 2022.

Across Wall Street, year-end bonuses are an important component of people’s overall compensation.

Investment bankers can earn bonuses in the millions of dollars, while bonuses can comprise 50% or more of a finance professional’s annual salary.