Investment Banks Fear Dealmaker Exodus Despite 15% Bonus Hike
Financial News
Investment banks are braced for an exodus of senior dealmakers next year, even though a rebound in M&A this year is likely to see bonuses rise by 15%.
A second-half bounce for M&A work has seen bonus expectations reverse from a negative outlook to potential rises of 10-15%, according to new analysis by Wall Street compensation consultants Johnson Associates.
“A lot of people will be disappointed,” Alan Johnson, managing director of Johnson Associates told Financial News. “They see the headline revenue increases of 20-30% and expect bonuses to be commensurate. M&A has been subsidised by the broader business in recent years. Pay will be up, but not as much as people expect.”
Investment banks are upping recruitment of senior dealmakers after the increase in deal activity. Wall Street bank executives have pointed to the return of “animal spirits”, with a surge in M&A expected next year leading to a renewed appetite to hire.
“Banks are looking to 2026 and thinking it is going to be an even better year,” said Johnson. “I think come March when bonuses are paid, there will be a lot of concern that talent will leave.”
Financial News / November 5, 2025
