Nov 14, 2023 - Economy
Another disappointing year for Wall Street bonuses
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Bonuses for 2023 are expected to be down or flat across much of the finance industry compared with last year, according to projections released Tuesday morning.
Why it matters: It's the second year of declining bonuses on Wall Street, though this year's projections look far less catastrophic than 2022's.
- Though the much-anticipated recession hasn't yet materialized, the projections reflect a fairly meh year on Wall Street. Finance professionals struggled to adjust to the higher rate environment and, if you'll recall, dealt with a mini-banking crisis.
Zoom in: Overall, investment banker bonuses are projected to fall by as much by as much as 25%, according to Johnson Associates, a compensation consulting firm.
- Retail and commercial regional bank bonuses could see a 10%-20% decline.
- Other sectors were more mixed. Hedge fund bonuses could see anywhere from a 5% decline to a 5% increase; while private equity bonuses are projected to be flat.
- Wealth management was a bright spot.
- Last year, Wall Street bonuses saw their biggest drop since the Great Recession, according to state government data.
The bottom line: "Most Wall Street professionals will have to wait another year for a rebound in year-end bonuses," said Alan Johnson, the firm's managing director, in a statement.
