Wall Street professionals can thank market appreciation and improving stock and business performance when they receive bigger bonuses for the second consecutive year, according to projections from consulting firm Johnson Associates.
Equity sales and trading professionals are estimated to see the largest bump in year-end incentives, with increases of 15% to 25%, followed by banking firm management and M&A advisers, who are expected to see bonuses 10% to 15% higher than last year.
However, real estate and venture capital professionals may not have as jubilant a New Year’s as the rest and can expect bonuses the same as last year’s. Employees of midsize and small private equity firms are also not estimated to see an increase in their year-end bonuses, while employees of large private equity firms are expected receive bonuses that range from flat to 5% higher than in 2024.
“The financial services industry has rebounded from a dismal first quarter and is on track to finish 2025 strongly despite continued geopolitical uncertainties and tariffs,” Johnson Associates Managing Director Alan Johnson said in a statement. “As a result, virtually every sector in the industry is projected to reward professionals with larger bonuses for the second straight year.”
Bonuses for fixed-income sales and trading professionals, as well as for investment bank debt underwriters, are estimated to rise by 5% to 15%, while asset management professionals’ incentives are projected to increase by 7% to 12%. Hedge fund, private credit, insurance, and retail and commercial banking workers are projected to receive a 5% to 10% increase in their bonuses.
“Demand for talent is likely to remain resilient in select segments, particularly within private
wealth, where top producers will continue to command premium compensation” Johnson said. “Firms seeking growth beyond their core offerings will need customized but adaptive compensation strategies designed to attract and retain specialized talent.”
Projected Bonus Increases for 2025
| Business Area | Change from 2024 |
| Equity Sales & Trading | Up 15% to 25% |
| Firm Management (Equity Underwriting) | Up 10% to 15% |
| Advisory | Up 10% to 15% |
| Wealth Management | Up 8% to 10% |
| Asset Management | Up 7% to 12% |
| Fixed Income Sales & Trading | Up 5% to 15% |
| Investment Banking (Debt Underwriting) | Up 5% to 8% |
| Private Credit | Up 5% to 10% |
| Corporate Staff | Up 5% to 8% |
| Hedge Funds | Up 2.5% to 10%+ |
| Insurance | Up 2.5% to 5% |
| Retail & Commercial Banking | Flat to Up 5% |
| Private Equity | Flat to Up 5% |
| Real Estate | Flat |
Source: Johnson Associates
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