Wall Street bonuses set to hit four-year high as trading surges  

Wall Street traders and investment bankers are poised to receive their largest bonuses since 2021, with payouts expected to rise for the second consecutive year driven by surging trading volumes and market volatility, according to financial compensation consultancy Johnson Associates.

Equity sales and trading professionals are projected to see the biggest increases at 15-25 percent, while investment bankers specializing in M&A advisory and equity underwriting could receive 10-15 percent higher bonuses.

Financial professionals across hedge funds, private credit, insurance, and commercial banking may see 5-10 percent gains in their incentive compensation.

Alan Johnson, managing director of Johnson Associates, attributed the strong outlook to record market valuations and a resurgence of previously stalled deals, though he cautioned that an economic slowdown with deteriorating credit and investment conditions could make next year "less favorable" for the financial industry.