Wall Street bonuses set to grow after banner year for IPOs and AI
Bonuses at big banks and investment houses are set to grow again thanks to a blockbuster year of historic IPOs, AI financings, and zippy markets, according to pay consultancy Johnson Associates, whose annual bonus report is required reading across the financial industry.
Key points
- “Nobody is going to wring their hands if an average performer is complaining — ‘don’t let the door hit you on the way out.’” Financial executives are keen to avoid the trap of 2021, when their efforts to gift-wrap the fruits of a banner year as special, one-time bonuses got baked into expectations anyway, with predictable howling in 2022.
- But the AI trade is now starting to sour, interest rates are rising, and last week’s Democratic gains may darken the backdrop for 2027.
- “Firms now value the best people more than they ever have, and value the average person less,” he said.
A word of caution for Wall Streeters planning how to spend their year-end bonuses: This may be as good as it gets for a while.
How this summary was made: extractive summary — built from the sources' own reporting. It is drawn only from the reporting of the sources listed below — read the originals for full detail. How we summarize →
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