Wall Street investment bankers expect significant bonus increases this year. Johnson Associates projects M&A advisory bonuses will rise between 15% and 20%. Equity trading and underwriting incentives may increase by up to 30%.
Major banks reported record earnings in the first half of 2026. Heightened client trading activity and a rebound in mergers and acquisitions fueled the profit growth.
Private equity and private credit sectors expect little to no growth in incentive pay. Some firms in these areas anticipate declining bonuses. Reduced headcounts at several institutions have expanded the bonus pool for remaining employees.