Bonus Analysis for European and U.S. Banks

How did your bonus turn out last year? If you work at a European bank, not including UBS and Barclays, you might still be in the dark about it. It’s also unclear if you’re aware of how bonuses are shaping up at Japanese banks. For those in U.S. banks, if your bonus is below 10%, well, that isn’t great.

The general consensus seems to be that this year’s bonus cycle was decent, though some expected more. “Expectations didn’t quite fit reality; we thought every banker would be highly rewarded at all levels,” comments Mike Karp, CEO of Option Group. He mentions that while some individuals “certainly did very well” in sales and trading, this year’s bonuses were particularly influenced by performance metrics compared to other years.

In sales and trading, MacroTrader performed impressively in 2025, with many U.S. banks seeing notable fourth-quarter growth in macro revenue. Consequently, the macro bonus pool is projected to rise by 8-12%, while bonuses for credit are less robust, increasing only by about 5-10%.

Here’s a brief overview of bonuses by bank. Keep in mind, this information is not officially verified, as banks usually refrain from commenting on their compensation structures.

Bank of America

Bank of America (BofA) announced a 10% uptick in its bonus pool this year. However, employees are feeling somewhat let down, citing that their bonuses now equate to 75% of their salaries, down from 110% previously. Additionally, 30% of these bonuses are paid in stock that vests over four years, which is causing dissatisfaction among staff.

In December, reports hinted that BofA is looking to boost bonuses for investment bankers by 20%. Bonuses for Asia-based employees are considered close to this estimate. Although BofA’s market bonuses saw a minor increase, feedback from areas like EMEA equities indicated only slight bonus growth despite exceeding the 2025 budget in September.

Barclays

It’s Barclays Bonus Day today. Recent reports noted that bonuses for senior staff categorized as significant risk-takers have risen by 16% to £900,000 ($1.2 million). The remaining staff of Barclays may not have fared much worse. Overall, bonuses across the bank have gone up by 15%, with some junior staff receiving share awards of £500.

However, not everyone seems thrilled. Some at Barclays are frustrated that bonuses appear skewed toward a select few—specifically, 718 individuals receiving over €1 million, with 89 getting more than €4 million.

BNP Paribas

BNP Paribas has yet to disclose its bonuses. The French bank doesn’t break down its corporate and investment banking compensation, but there was only a 3% increase in operating expenses last year, with a decline in the last quarter when bonuses are usually set.

While that isn’t promising, it was reported that BNP Paribas might increase bonuses for its markets division by 10%. Last year’s average bonus for key risk-takers was around €678,000, but this year, the figure might be cautiously projected at €750,000, with lower profits expected for M&A bankers.

Citi

Citi’s bonuses are described as “mixed.” Factors in London caused a stir as key risk-takers signed new contracts last year that featured lower salaries but fixed bonuses with higher variable payouts. Some London bankers have since reported bonus increases ranging from 10-15%, and even up to 20% for others.

Still, not all employees received generous bonuses. Some traders in the markets sector reported significant cuts, with bonuses slashed by half after previous zeroes. Citi has also been downsizing its workforce, leading some to speculate that the bank may hope many individuals will leave voluntarily.

Deutsche Bank

Deutsche Bank will announce its bonuses in March, but by then, it will have a clearer picture of its competitors’ payouts. Last year, average bonuses paid to key risk-takers were $1.1 million, marking a significant increase of 32%.

Goldman Sachs

Employees at Goldman Sachs seem to have mixed feelings about their bonuses. While bankers in certain divisions appear quite satisfied, those in the mid-office and back-office remain uncertain, if not a bit disheartened.

A senior engineer noted that bonuses in the engineering and operations sectors took a significant hit to push for employee turnover. In general, Goldman’s bonus pool was reported to be 10% larger than before.

HSBC

HSBC is set to announce its bonuses by the end of this month, but early indications aren’t particularly encouraging. Reports suggest that the bank may be implementing zero bonuses and adopting a kill-what-you-eat approach, causing internal concerns.

JP Morgan

JP Morgan’s bonuses are perceived to be “good,” coinciding with a 10% increase in funding according to reports.

Morgan Stanley

Morgan Stanley is said to have compensated its bankers well, especially in Asia, although middle-level and back-office staff have voiced concerns over lower pay. Some employees feel they were moved to a pay-heavy structure without the corresponding increases.

UBS

UBS has yet to release its bonus details for last year, but early feedback suggests employees are mostly content. Most individuals described the bonuses as “fine,” and discussions around double-digit increases are making the rounds. Some divisions reportedly saw bonus pools rise by 20%, with an 18% increase noted for Asian bank bonuses.

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