May 5, 2022 - Economy

Wall Street bonuses will likely drop this year

Emily Peck

Illustration of a hand pushing down a hundred dollar bill. — Illustration: Aïda Amer/Axios

Bonuses on Wall Street will be lower this year, according to a closely watched early projection released this morning.

Why it matters: Bonuses were sky-high in 2021, along with everything else. This year everyone is returning to earth. The so-called "war for talent" will slow and firms will be looking to control expenses, according to the report, from Johnson Associates, a compensation consulting firm in New York City.

Plus, the markets are down.
"2021 was so good. 2022 is looking dramatically less attractive," said the firm's managing director, Alan Johnson, who's been doing these reports for years.

By the numbers: The numbers vary by sector. Asset management follows the markets, and Johnson projects 10%-15% decline in bonuses.

Deal makers could see even bigger drops. "Off dramatically," he said.

Our thought bubble: Last year bonuses were massive, once-in-a-decade payouts. Probably these folks are gonna be OK.

Add Axios on Google

Wall Street bonuses will likely drop this year

What to read next