Wall Street Bonus Update: Who’s Winning in Banking and Private Equity

A new compensation report from Johnson Associates shows traders riding a wave of volatility to bigger year-end bonuses while many private equity professionals and M&A bankers brace for another year of stagnant or shrinking pay.

“It was dead in Q1” for mergers and acquisitions, said Chris Connors, a principal at Johnson Associates, adding, “but there was a recovery in the second quarter.”

Bonuses for private credit professionals are forecast to climb between 2.5% and 7.5% as investor demand surges and firms jostle to hire top talent. Johnson’s report, however, warned that private credit’s hiring spree is vulnerable to risks.

“Private credit has certainly reached bubble territory in terms of fundraising, investor demand, the talent market,” Connors said. “It hasn’t quite yet popped, but I do think cracks are showing,” he added.

The Johnson Associates report also flagged broader risks that could further impact bonuses.

“These are real concerns,” Connors said of remaining geopolitical uncertainty and tariffs. He added that financial services firms, for the most part, “have been incredibly resilient in the face of all that.”

Business Insider / August 5, 2025