Year-end bonuses on Wall Street are forecast to be as much as 45% lower this December as the stock market continues to be volatile and the number of deals remains low.
A new report by New York-based compensation consultant Johnson Associates says that
investment bankers on Wall Street who underwrite equity or debt offerings can expect to receive bonus payments that are 40% to 45% lower than in 2021.
Bankers who manage mergers and acquisitions (M&A) are forecast to see their annual bonuses shrink by 15% to 20% come December.
The lower compensation contrasts with 2021, when Wall Street banks brought in strong profits as markets for buyouts and initial public offerings (IPOs) boomed around the world.
News of the reduced bonuses comes as many Wall Street banks undertake staff cuts. Goldman Sachs (GS) began a round of job cuts in September, targeting about 500 people as its third-quarter profit declined an annualized 44%.
Other banks, including Morgan Stanley (MS), have announced their intentions to cut staff during the remainder of this year.
The one bright spot in banking is among fixed income traders who will probably see their bonuses rise 15% to 20%, according to the Johnson Associates survey.
Related Stories
