Wall Street Bonuses To Increase 35% This Year

Wall Street bankers are on track to pocket some serious bonus checks this year as incomes skyrocket and firm the stake to retain talent.

Legions of Wall Street financiers, analysts and traders – many of whom have already benefited from recent pay hikes – can now expect double-digit increases in their year-end bonuses, data shows recently published by compensation consulting firm Johnson Associates.

Bonuses for 2021 will be higher by as much as 35% in some cases, with the biggest boost going to investment bank underwriters amid a surge in multibillion-dollar transactions, like Discovery and NBCUniversal, according to the data.

“When Wall Street is doing well, they pay well,” said Alan Johnson of Johnson Associates. “And Wall Street has had its best year in a decade.”

Indeed, banks like Goldman Sachs and JPMorgan have posted record profits as the economy comes to life.

A trading boom, capital raising and IPOs have all helped to boost investment banking income, while the trillions that the Federal Reserve has pumped into the markets have driven many stocks to de new heights.

Investment banking advisers and professionals in sales and trading can expect their bonuses to increase up to 25 percent as a result. Asset management professionals, including those who manage hedge funds and private equity funds, will see a more modest increase – around 15%.

Yet for senior bankers, a double-digit bonus increase can be worth hundreds of thousands or even millions of dollars, Johnson told The Post.

The bonus windfall comes as Wall Street throws money at some staff in a bid to retain talent. Jefferies Financial Group is the latest to raise the base salary of junior bankers, the Wall Street Journal recently reported.

First-year analysts working for Richard Handler’s Jefferies will now earn $ 110,000, up from $ 85,000, while third-year associates will earn $ 150,000, up from $ 125,000.

Last week, David Solomon’s Goldman Sachs also increased the base salary of junior bankers by 30%, which saw first-year associates earn $ 110,000. Earlier this year, JPMorgan Chase, Citigroup and Morgan Stanley increased the early years salary from $ 85,000 to $ 100,000.

Banks are giving away a lot of cash to keep overworked talent from fleeing amid a skyrocketing workload thanks to the surge in transactions.

In March, a leaked slideshow compiled by 13 junior Goldman Sachs analysts detailed complaints about 100-hour work weeks. Some have complained of shifts as long as 20 hours that leave them little time to eat, sleep or shower, saying the grind is harming their physical and mental health.

The complaints led Goldman and JPMorgan to pledge to hire more staff, with the latter pledging to increase its workforce by 200. Private equity firm Apollo Global Management has reportedly offered some associates up to $ 200,000 for to stay.

Elsewhere, Citibank CEO Jane Fraser told employees she was banning Zoom meetings on Fridays to combat Zoom fatigue. The Jefferies investment bank even gave its junior staff the Primo Peloton bike as a “thank you” for their long working hours.

But with the business boom, sleep deprivation and anxiety at work are unlikely to go away, Johnson said.

“Banks are not going to turn away business – the stress and strain on workers will inevitably continue,” Johnson said.