"A new report from compensation consultancy Johnson Associates found that major banks are projected to increase bonuses by 39% from 2022 levels, outpacing wealth management and hedge funds, which are expected to increase bonuses by 29% and 24%, respectively. Alan Johnson, the firm's founder, said that banks' M&A, equity underwriting, and trading units are doing particularly well."
"After years in private equity's shadow, Wall Street's biggest banks are reclaiming their status as some of finance's top-paying employers. The big banks' luster marks a change from a few years ago, when private equity firms were considered the most lucrative places to work, Johnson said."
"One of the stars for a long time was private equity. The big compensation opportunities, which come through carried interest, have been delayed, or in some cases, may never happen. They were clearly the lead, and now banks and others have kind of caught up some or all the way."
Major Wall Street banks are expected to deliver significant year-end bonuses, with a 39% increase from 2022 levels according to Johnson Associates. Investment bankers will see approximately 10% bonus increases, substantially outpacing private equity firms at 5% and wealth management and hedge funds at 24-29%. Banks' M&A, equity underwriting, and trading units are performing particularly well. This marks a reversal from recent years when private equity dominated as the most lucrative sector. Private equity's decline stems from reduced fundraising and companies remaining private longer, delaying carried interest opportunities. Private credit faces potential bonus declines of 2.5-7.5% due to redemption requests and AI concerns affecting portfolio companies.
#investment-banking-bonuses #compensation-trends #private-equity-decline #wall-street-recovery #financial-services-employment
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