Investment Banking

Banker bonuses expected to slump 20% as tariff chaos hits deals

Trader payouts are predicted to surge as banks cut bonuses for investment bankers

Bonuses for traders are set to surge as dealmaker payouts decline
Bonuses for traders are set to surge as dealmaker payouts decline Photo: TIMOTHY A. CLARY/AFP via Getty Images

Bonuses for investment bankers are predicted to slump by as much as 20% this year as tariff chaos has stymied an expected surge in dealmaking.

Investment bankers working in M&A and equity underwriting teams could see bonuses decline between 10% and 20% in 2025, according to predictions from Wall Street compensation consultants Johnson Associates, as payouts for traders jump.

WSJ Logo