Bankers Feeling ‘Short-changed’ by Bonus Round After Deal Surge

Wall Street banks’ bonuses for investment bankers have increased by 10-15% at most firms, but senior dealmakers contacted by Financial News said that payouts have underwhelmed after a banner year in 2025.  

Alan Johnson, who heads Wall Street compensation consultants Johnson Associates, said that those in advisory roles received a 10-15% uplift, with some receiving increases of up to 20%.  

“People have amnesia,” he said on the bonus disappointment. “They remember how good it was towards the end of the year, but forget the market discombobulation in the first three months.” 

With dealmaking expected to pick up again in 2026, there are expectations that senior bankers will make a move. But hiring is unlikely to be frenzied, with Johnson pointing to AI taking more grunt work from junior ranks that is likely to lead to smaller analyst classes this year.  

“Those getting squeezed will be the people in the middle,” said Johnson. “Juniors are cheaper and readily available, while those in senior ranks have the clients and can bring in new business. There is just less demand for those in the mid-ranks.” 

Johnson said that most investment banks are “pretty well-staffed” for any potential uptick in deals, aside from senior employees, and that boutiques are likely to be the most “aggressive” recruiters. 

Financial News / February 8, 2026