As bonus season approaches on Wall Street, bankers face a challenging landscape marked by rising interest rates, bank failures, and a slowdown in dealmaking. A recent report from compensation consultant Johnson Associates Inc. indicates that merger advisors may experience a substantial decline of up to 25% in their bonus payouts for 2023. Similarly, professionals in retail and commercial businesses at regional banks could witness a decrease in year-end bonuses ranging from 10% to 20%.

A separate report by Options Group highlights that investment bankers are likely to experience the most significant compensation decline, down nearly 22%. At the same time, wealth management workers could see gains of approximately 5%.

Despite the anticipated drop in bonuses, the financial services sector remains relatively well-compensated compared to the global economy. 

Financial Advisor Transitions consults advisors nationwide to explore employment transition options and to preserve and protect their practice in any transition that they make.