FINANCIAL SERVICES INDUSTRY WILL AWARD LARGER YEAR-END BONUSES FOR SECOND CONSECUTIVE YEAR: JOHNSON ASSOCIATES ANALYSIS

Equity sales and trading professionals to see largest increase

NEW YORK, NY, UNITED STATES, November 5, 2025 /EINPresswire.com/ -- For the second consecutive year, year-end Wall Street incentives are projected to increase throughout most of financial services amid strong revenue growth, stock market appreciation and continued improved business performance. That’s according to a closely watched industry analysis released today by Johnson Associates, Inc., a New York-based compensation consulting firm.

“It appears Wall Street and most of the financial services industry will once again be bullish when firms hand out year-end bonuses,” said Alan Johnson, managing director of Johnson Associates and one of the nation’s foremost authorities on financial services compensation. “The financial services industry has rebounded from a dismal first quarter and is on track to finish 2025 strongly despite continued geopolitical uncertainties and tariffs. As a result, virtually every sector in the industry is projected to reward professionals with larger bonuses for the second straight year.”

According to the analysis, equity sales and trading professionals can expect to see their year-end incentives (cash bonuses and equity awards) jump 15% to 25%, followed by a 10% to 15% increase for banking firm management and M&A advisory professionals. Payments for fixed income sales and trading professionals and investment banking debt underwriters are projected to increase by as much as 15% while payments among asset management professionals are projected to increase by as much as 12%. Incentives for most other professionals including those in hedge funds, private credit, insurance and retail and commercial banking are projected to rise by as much as 5% or 10%. Only real estate professionals are expected to receive flat payments.

Business Area Percent Change from 2024
Equity Sales & Trading Up 15% to 25%
Firm Management
(Equity Underwriting) Up 10% to 15%
Advisory Up 10% to 15%
Wealth Management Up 8% to 10%
Asset Management Up 7% to 12%
Fixed Income Sales & Trading Up 5% to 15%
Investment Banking
(Debt Underwriting) Up 5% to 15%
Investment Banking
(Equity Underwriting) Up 5% to 8%
Private Credit Up 5% to 10%
Corporate Staff Up 5% to 8%
Hedge Funds Up 2.5% to 10%+
Insurance Up 2.5% to 5%
Retail & Commercial Banking Flat to Up 5%
Private Equity Flat to Up 5%
Real Estate Flat


Johnson Associates regularly monitors compensation trends among a wide range of commercial and investment banks, alternative and traditional asset management firms, and other financial services companies. Its quarterly compensation analysis is based on the firm’s ongoing monitoring of the financial services industry, numerous proprietary data points, and public data from 15 of the nation’s largest investment and commercial banks, and 20 of the largest asset management firms.

Outlook for 2026

Johnson commented: “Looking ahead to 2026, firms are entering the year with measured caution amid signals of a slowing global economy, elevated market valuations, and heightened credit risk. As artificial intelligence continues to redefine operating models, workforce structures are expected to contract, evolve, and reorient around new efficiencies.

“Demand for talent is likely to remain resilient in select segments, particularly within private wealth, where top producers will continue to command premium compensation. Firms seeking growth beyond their core offerings will need customized but adaptive compensation strategies designed to attract and retain specialized talent.

“Human resources functions will be central to this evolution, calibrating differentiated pay structures and guiding compensation programs that sustain competitiveness as the industry evolves.”

About Johnson Associates

Johnson Associates is a boutique compensation consulting firm specializing in the design of annual and long-term incentive plans and establishing appropriate market pay levels. The firm is well-known for providing candid advice and for its expertise and in-depth knowledge of the financial services industry, including major investment and commercial banks, asset management firms, hedge funds and other alternative investments, insurance companies, and brokerages. For more information, visit www.jaiconsulting.com

Ed Emerman
Eagle Public Relations
+1 609-240-2766
eemerman@eaglepr.com

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