“For the first time in decades, inflation has a significant impact on real compensation outcomes,” according to the report.

The consumer price index rose 8.5% between March 2021 and 2022, and rising interest rates are putting the brakes on corporate deal making.

The latest figures reported by Johnson represent a dimmer outlook for the year than the firm forecasted in 2021.

“I don’t think [bonuses] are going to up as much next year,” Managing Director Alan Johnson told CNBC in 2021.“But the view is ’22 will be a really good year.”

Banking Dive / May 6, 2022