New York bankers are expected to pocket bonuses of up to 35% as Wall Street dealmaking picks up steam from the economic downturn following the coronavirus pandemic.
Johnson Associates, which specializes in bank compensation issues, expects bonuses to rise across all sectors for the first time since 2021, driven by higher profits, a surging stock market and low interest rates.
“This year has been surprisingly strong and the industry is very optimistic about 2025, particularly with the potential for further M&A deals to be announced,” said Alan Johnson, chairman of the consultancy.
Johnson added that while bonus amounts remain below record levels in 2021, earnings and compensation are “unusually good.”
His firm says investment bankers working on fixed-income transactions can expect a staggering 35% increase in bonus pay this year, while investment bankers working on mergers can expect increases of 15% to 25%. Ta.
Fixed income traders' salaries could rise by 5% to 10%, while hedge funders' salaries could rise by up to 15%, according to Johnson Associates.
Only real estate and retail lenders will miss out on significant payments, the report said.
The report comes after a New York Bean Counter survey last month predicted a 7% increase in bonuses this year.
The average Wall Street salary last year was $471,370, nearly five times the average annual salary in New York state, according to figures released by State Comptroller Thomas DiNapoli.
A previous report released by Mr. DiNapoli's office in March found that the average Wall Street bonus was $176,500 last year, for a total of $33 billion.
He said the financial industry is the financial lifeblood of New York authorities.
Banks and their employees contribute 27% of the state's tax collections ($28.8 billion) and 7% of the city's total tax revenue, representing 5.4% of last year's revenue.
