Wall Street professionals are set to see their year-end bonuses increase for the first time in years, according to new survey findings from Johnson Associates, a compensation consulting firm which tracks pay and bonuses across the financial sector.
Revenue growth, a booming stock market and overall increased business performance were cited as factors which will play into bonus compensation.
“Wall Street professionals will have something to cheer about when their year-end bonuses arrive,” said Alan Johnson, managing director of Johnson Associates, in a statement. “Virtually every sector in the industry is performing strongly this year, with the exception of retail and commercial banking.”
Strong market returns will allow for higher bonuses than in previous years. “Firms are in a strong financial position to do what they haven’t been able to do since 2021 – reward their professionals with larger bonuses,” Johnson said.
Compensation Growth for 2024
Business Area |
Percent Change from 2023 |
| Investment Banking (Debt Underwriting) | Up 25% to 35% |
| Investment Banking (Equity Underwriting) | Up 15% to 25% |
| Equities Sales & Trading | Up 15% to 20% |
| Firm Management | Up 10% to 15% |
| Hedge Funds | Up 5% to 15% |
| Asset Management | Up 7% to 12% |
| Wealth Management | Up 7% to 12% |
| Fixed Income Sales & Trading | Up 5% to 10% |
| Corporate Staff | Up 5% to 10% |
| Advisory | Up 5% to 10% |
| Private Credit | Up 10% + |
| Private Equity | Up 5% |
| Insurance | Up 5% to 10% |
| Real Estate | Flat |
| Retail & Commercial Banking | Minus 5% to Flat |
All sectors will see an increase in bonus compensation, except for retail and commercial banking, as lending is down, and provisions for credit losses rise, the firm reported.
Investment banking compensation is up between 15% to 25% for equity underwriting. While the IPO market is still slow, revenues are up significantly. Debt underwriters will see a 25% to 35% increase over 2023 bonus compensation due to booming revenue as a result of the growth in debt issuance.
S&P Global Ratings reported that global corporate debt was up 3.3% in the 12 months ending July 1, 2024, with investment-grade-rated debt issuance up 4.4% and speculative-grade debt rising 1.1%. Global rated corporate debt outstanding reached $23.98 trillion as of July 1, 2024, up 3.3% ($776 billion) over the past 12 months, the ratings agency reported last month.
Bonus compensation in the real estate sector is flat. Johnson Associates notes that the sector has bottomed out following a multi-year downturn.
Private equity bonus comp is projected to be up around 5%. Johnson Associates expects compensation at smaller, single strategy private equity firms to stay flat, while larger firms will see increased compensation growth.
Private credit, a booming asset class and among the most in demand from institutional investors, could see a 10% increase in bonus compensation, the firm projects. As a percentage of total asset manager revenue, alternative asset classes made up 54%, projected to increase to 57% by 2028. In 2003, this figure was only 32%.
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