Mateo Colombo
Wall Street bonuses will rebound this year, compensation consultancy Johnson Associates said in a report Tuesday, thanks to strength in stock markets and a recovery in trading activity.
Investment bankers specializing in debt underwriting are expected to earn the largest increases in bonuses this year, ranging from 15% to 25% year-on-year growth, driven by “substantially higher” debt issuance proceeds compared to 2023.
Bonuses for equity underwriters are expected to rise by 10% to 20% in 2024, with the “IPO market gradually awakening,” according to Johnson Associates. saying. In contrast, bonuses for the retail/commercial sector are expected to be -5% at a stable level, as net interest income was affected.
Amid growing speculation that the Federal Reserve will begin cutting borrowing costs in the second half of 2024, the S&P 500 is up 8.9% so far this year and 25% year over year.
While investment banking incentives are seen recovering from multi-year lows, regulators have been trying to clamp down on Wall Street bonus payments.
Last month, the Wall Street Journal reported that US banking regulators are preparing to reintroduce a proposal that would force big banks to defer executive compensation and claim a larger share of bonuses in the event of large losses.
The largest US investment banks: JPMorgan Chase (JPM), Goldman Sachs (GS), Morgan Stanley (MS), Bank of America (BAC), Citigroup (C).
