Wall Street bonuses are anticipated to decline this year as highlighted by Johnson Associates' annual report, which indicates a potential drop of 7.5% in investment banking bonuses and 10% in hedge fund compensation. The report ties this trend to Trump's tariff policies that have dampened corporate dealmaking. Despite the overall decline, trading desks may see increased activity due to market fluctuations. Alan Johnson, founder of Johnson Associates, expresses concern over the unexpected downturn and the accompanying stress levels among firms due to ongoing uncertainties regarding the future.
“No one saw this coming,” Alan Johnson, founder of Johnson Associates, said. He elaborated, “The continued uncertainty will increase the stress levels of different firms and individuals. Will this end? When will it end? How will it end?”
The report warns that bonuses will be down across sectors, from investment banking to private equity dealmaking. The only bright spot will be desks executing trades, benefiting from market volatility.
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