Discover your dream Career
For Recruiters

One chart that tells you everything about bonuses on Wall Street

Banking bonuses: still falling

If you're looking for a financial services job that comes with potential for big bonus growth in the years to come, where should you focus your attention? Try asset management or private equity, Forget hedge funds and go nowhere near investment banking.

So says Wall Street pay consultant Alan Johnson, whose first quarter bonus projections (shown in the chart below) suggest asset management bonuses are roaring ahead and investment banking bonuses are not. In fact, investment banking bonuses are falling: Johnson thinks they'll decline 30% this year.

Needless to say, Wall Street's declining bonuses are being offset by Wall Street's increasing salaries. Junior bankers at analyst and associate level have received salary increases of 20-25% in the past year, offsetting the decline in their incentive pay.

Equally, asset management might not be the safe bet that Johnson thinks it is. Morgan Stanley's banking analysts are predicting a harsh future for asset management firms, which they predict will struggle as interest rates rise in the US.

Wall Street bonuses

 Source: Johnson Associates 

author-card-avatar
AUTHORSarah Butcher Global Editor

Sign up to Morning Coffee!

Coffee mug

The essential daily roundup of news and analysis read by everyone from senior bankers and traders to new recruits.

Boost your career

Find thousands of job opportunities by signing up to eFinancialCareers today.
Latest Jobs
Linux Engineer
Chicago, United States
DevOps Engineer
Chicago, United States
Selby Jennings
Quantitative Researcher - Systematic Macro
Selby Jennings
New York, United States
Selby Jennings
Quantitative Researcher - NLP
Selby Jennings
New York, United States
Selby Jennings
Systematic Macro Quant Researcher
Selby Jennings
New York, United States
Selby Jennings
Quantitative Analyst - Commodities
Selby Jennings
New York, United States

Sign up to Morning Coffee!

Coffee mug

The essential daily roundup of news and analysis read by everyone from senior bankers and traders to new recruits.