In the coming week, America's foremost financial institutions, including JPMorgan, Goldman Sachs, Citi, Morgan Stanley, and Bank of America, are set to unveil year-end bonuses for their staff. These announcements are eagerly anticipated, often influencing employee satisfaction and career decisions.
Reflecting on the past, 2021 was a lucrative year for Wall Street professionals, especially in M&A, leading to substantial bonuses. However, 2022 experienced a significant downturn, resulting in universally lower bonuses, even in the more successful sectors.
The landscape in 2023 was challenging, marked by widespread layoffs, bank failures, and an uncertain economic recovery, setting the stage for modest bonuses this year. Alan Johnson, a renowned compensation expert, predicts that bonuses for most bank and hedge fund professionals will remain stagnant or decrease further compared to 2022. Exceptions are anticipated in areas such as equity underwriting, and in retail and commercial banking at large firms, as well as in wealth management. These forecasts, detailed by Johnson & Associates, were first reported by Business Insider in November.
Traders can expect relatively unchanged bonus pools, with slight increases possible at Goldman Sachs and Bank of America, as per Bloomberg's late December report.
Johnson notes that employees typically consider changing firms after receiving their bonuses. However, the current job market's constraints and a general inclination towards risk aversion might lead to fewer departures this year.
Insider has gathered information from sources about the anticipated bonus announcement dates at major Wall Street banks. Although these dates are subject to change, here is the current schedule:
• Bank of America plans to announce bonuses on January 26, according to insiders.
• Citi, amid a significant restructuring, is expected to start disclosing bonus information in the latter half of January, with exact dates varying by global region.
• Goldman Sachs will start revealing compensation details following its fourth-quarter earnings report, slated for Tuesday, January 16, and will continue in the following days.
• JPMorgan typically begins its bonus announcements the Tuesday after Martin Luther King Day, which falls on January 16 this year.
• Morgan Stanley is expected to disclose bonuses on January 10, as per sources.
Spokespersons for these banks have not commented on the matter. European banks, including Barclays and UBS, usually start their compensation announcements in mid-February, with the actual payments being processed a week or two afterwards.
