Wall Street Banks Signal Generous Year-End Bonuses After Strong 2025 Performance
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It’s beginning to look a lot like bonus season on Wall Street — and early indications suggest 2025 payouts will be robust.
Major investment banks including JPMorgan Chase, Goldman Sachs, and Morgan Stanley have begun communicating compensation ranges to staff, with trading and advisory divisions poised for particularly strong awards.
A resurgent fixed-income trading business, combined with a pickup in mergers and capital markets activity in the second half of the year, drove better-than-expected revenues.
“2025 turned out to be a solid year across most businesses,” said one managing director at a bulge-bracket firm. “Leadership wants to reward performance and retain talent.”
Junior bankers and analysts are hearing numbers 10-20% above last year’s levels in many cases, while top performers in high-revenue areas could see even larger increases.
The positive tone contrasts with more cautious years following the pandemic, when cost discipline was paramount.
Banks are also expanding bonus pools to include technology and risk management staff, reflecting the growing importance of those functions.
The announcements come as financial stocks have outperformed broader markets in recent months, buoyed by higher interest rates and dealmaking momentum.
For New York City, the bonus windfall translates into significant economic stimulus — from real estate to luxury retail.
