As deals begin to slow down across the financial industry, professionals who enjoyed lavish bonuses in 2021 should not expect the same for 2022. According to Bloomberg News, bonus pay for individuals underwriting debt and equity could plunge more than 45 percent this year.
Decreases in payments will not stop there. Those advising on mergers and acquisitions could see their bonuses drop 25 percent. Alan Johnson, managing director of Johnson Associates, stated that the industry has experienced bonus declines before, but persistent inflation, recession fears, and global turmoil, including Russia's invasion of Ukraine, brought on wild market swings; bonus declines are expected to be worse than ever.
Other professionals, such as asset managers, are expected to see a decline in their bonuses. Those working in asset management could see a decrease of 20 percent, and wealth managers could see close to a 15 percent decrease in bonuses. On the other hand, equity traders may see a 10 percent increase, and their fixed-income colleagues may enjoy a 20 percent increase, with the same market tumult boosting trading revenue.
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