U.S. banker bonuses set to slide while traders benefit -study
2022.08.04 13:26
FILE PHOTO: A Wall Street sign outside the New York Stock Exchange in New York City, New York, U.S., October 2, 2020. REUTERS/Carlo Allegri
By Lananh Nguyen
NEW YORK (Reuters) – Bonuses for Wall Street bankers are projected to plunge as much as 45% this year as business dries up.
Payouts for investment bankers who underwrite deals will probably drop 40% to 45% this year, while incentive compensation for those advising on transactions is estimated to fall 20% to 25%, according to compensation consultancy firm Johnson Associates.
“Headcount will decrease as firms scale back after increasing headcount in 2021 and into 2022,” Alan Johnson, a managing director at the consultancy, wrote in a report.
While investment bankers have come under pressure from turmoil in financial markets, their counterparts in trading have benefited from a surge in volatility and client activity.
Fixed income traders and salespeople will probably get pay bumps of 15% to 20%, while bonuses for stock traders could rise 5% to 10%, according to the report.
