Wall Street Traders Reap Rewards as Bonuses Jump 10-30%

According to a recent report by compensation consultancy Johnson Associates, Wall Street stock and bond traders can expect their bonuses to jump 10% to 30% this year. The firm's founder, Alan Johnson, explains that the uncertainty around tariffs and continuous market upheaval has favored volatility and traders.

In contrast, other financial employees are not faring as well, with compensation expected to be flat or slightly higher. Wealth management and hedge fund executives are estimated to see bonus increases of up to 5%, while asset managers will likely get bumps of 2% to 7.5%, helped by recovering markets and inflows of client funds.

The report characterizes 2025 as a "regular" year for compensation, improving from the bad outlook when the new U.S. import tariff policy was announced. However, payouts for investment bankers will likely remain muted, even though initial public offerings and M&A deals may rebound in the second half of the year. This is because investment banking fees are paid when deals close, which can take months, so the compensation for advisory bankers is expected to remain flat or rise a modest 5% for this year.