Experts predict that merger advisors' bonuses will decrease this year due to the stagnant nature of the business. On the other hand, asset-management executives can expect slight compensation increases.

According to the consulting firm Johnson Associates, Inc., advisors involved in M&A deals could experience a drop of up to 25 percent in their payouts, and any improvement is unlikely until 2024. Traders also are facing a disappointing payout season, with incentives potentially declining by as much as 10 percent. However, the report highlights that certain fixed-income businesses are positioned for better performance.

Despite the rise in equities and the growing market share of passive funds and lower-fee products, traditional asset management firms likely will witness unchanged incentives. Johnson Associates notes that those firms have responded by reducing hiring and cutting staff numbers to safeguard their profit margins. Alternative-investment firms may experience more favorable bonus outcomes, where hedge fund bonuses are trending steady or exhibiting modest increases. AdvisorHub reports that the private equity sector's outlook remains relatively stable compared to the previous year due to challenges in fundraising.

For executives in underwriting roles, bonuses are projected to stay level or decrease by as much as 10 percent. However, there is a positive trend in equity underwriting, which has been gaining momentum, according to the report.

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