Wall Street Bonuses Set To Rise In 2025 Amid Rebounding Markets

Wall Street bonuses are expected to climb across much of the finance industry in 2025, marking a reversal from earlier projections of declines, according to Bloomberg. The shift comes after a volatile but lucrative second quarter, with trading revenue hitting records and equity traders potentially seeing bonuses rise up to 30%. Fixed-income traders could see gains of 10% to 20%, while modest increases are expected for investment bankers, asset managers, and wealth advisers. Mergers and acquisitions activity is starting to recover for investment bankers, but the expected surge has not yet fully materialized. Retail and commercial banking staff may face flat or declining bonuses, and venture capital remains challenged. AI-driven efficiencies are also reshaping staffing strategies across firms, potentially reducing headcount but increasing pay for remaining roles. New York State estimates put the total bonus pool at a record $47.5 billion, with the average annual bonus rising nearly a third to $244,700.