In a year poised to break records, Wall Street’s elite investment bankers are gearing up for an exceptionally generous bonus season. As the markets flourish amidst a post-COVID-19 recovery, major players like Bank of America Corp., JPMorgan Chase & Co., and Morgan Stanley are preparing to bestow double-digit pay boosts upon their top traders and financial experts.
Reports indicate that leading investment banks are planning significant increases in year-end bonuses, with figures exceeding 10% across various trading desks. JPMorgan is rumored to elevate bonuses for investment bankers by as much as 15%, while Goldman Sachs may surpass its competitors with even more substantial raises on select trading teams.
This anticipated surge in bonuses marks a stark departure from the conservative payouts witnessed in recent years when inflation rates outpaced meager bonus adjustments. Banks have capitalized on heightened trading activity and increased deal flow throughout the year, positioning the financial sector for one of its most prosperous periods in history.
Forecasts from New York-based pay consultancy Johnson Associates suggest a
notable
jump in 2024 compensation across multiple banking sectors. Particularly, areas such as trading and investment banking could witness spikes of up to 35%, while sectors like real estate and retail banking may experience slower growth.
The favorable market conditions have resulted in positive returns across major asset classes this year, with gold surging by 26.7% and stocks rallying by 23%. This bullish trend has propelled Wall Street’s bonus payouts to unprecedented levels over the past decade, with average annual bonuses nearly doubling from $111,400 in 2011 to $240,400 in 2021.
With robust trading revenues driving financial performance this year, it is expected that another round of substantial raises awaits industry professionals. As Wall Street braces for what could be a historic bonus season, anticipation is high amongst investment bankers eyeing lucrative double-digit pay increases amidst the current market euphoria.
