Wall Street Workers’ Bonuses Could Take A Hit As US Economy Continues To Slow – By Maggie Valenti (International Business Times) / Aug 4, 2022
Investment bankers can expect lighter bonuses in 2022, according to a report released Thursday. While 2021 featured an impressive increase for Wall Street bonuses, this year is not going to be as profitable.
For those in underwriting debt and equity, incentive pay could decrease by over 45%, according to the report from Johnson Associates. Meanwhile, those in advising on mergers and acquisitions could see a lesser decrease in incentive pay of 20% to 25%.
“What’s unusual about this is that it comes so soon after a terrific year last year. That, plus you have high inflation eating into people’s compensation,” Alan Johnson, managing director of Johnson Associates, told CNBC.
The report also suggests that those working in asset management may see a 15% to 20% decline in incentive pay. Private equity firms may cut incentive pay by between 5% and 10% depending on the size of the firm. Hedge funds could also cut incentive pay by 15%.