Investment bankers helping companies issue debt are expected to
have the highest raises in bonuses this year, from 15% to 25%,
as companies sell record volumes of debt.
As initial public offerings come back, bonuses for equity
underwriters are expected to rise 10% to 20% this year.
"We are seeing almost all segments on Wall Street raising
compensation", said the firm's founder Alan Johnson. "This
should be a good year, although there are risks stemming from
elections in the U.S. and global conflicts".
Although improving, incentives in investment banking are still
far from their peak in 2021. The only segment where pay is above
the 2021 level is private equity, but the workforce at these
companies is considerably smaller than in banks, Johnson said.
Higher trading volumes are expected to increase bonuses for bond
traders between 10% and 20%, and 5% to 15% higher for equity
traders. Executives working at wealth management will probably
have 5% to 10% higher compensation, whereas asset management and
hedge fund employees are expected to receive 5% higher bonuses.
In asset management, although clients have been migrating from
higher fee products to passive investment products with lower
fees, the rise in stocks in 2024 has increased the volume of
assets and profitability in the business.
(Reporting by Tatiana Bautzer; Editing by Josie Kao)
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