Wall Street Bonuses to Rise, With M&A Bankers Set for 20% Boost or More

Wall Street bonuses are projected to jump for the third year in a row as market volatility fuels trading demand and dealmaking makes its long-awaited comeback. For investment bankers who advise corporate clients on deals, incentive pay is poised to be up 10% to 20% or more from a year earlier, according to Johnson Associates Inc. 

“It’s the year of the bank,” Alan Johnson, managing director of Johnson Associates, said in an interview. “It’s a horse race between trading and M&A advisory.” 

“If you look to revenue per head across private equity, private credit, you name it, firms are more productive,” Chris Connors, managing director at Johnson Associates, said in a Bloomberg Television interview Thursday. “They have less heads, but also top line growth is there. This is why this is the year of the bank.” 

Still, most of the financial industry should be happy with performance so far, and how that’s reflected in year-end bonuses, as long as the deal pipeline and trading activity remain strong. 

“It’s early,” Johnson said, “but things are surprisingly optimistic again, knock on wood — for now.” 

Bloomberg / May 7, 2026