Wall Street bonuses are on track to rise for a third consecutive year in 2026, as IPO activity rebounds and trading revenue holds strong amid market volatility. Compensation consultancy Johnson Associates projects the largest increases for bankers in equity sales and IPO underwriting, whose bonuses are expected to climb by 20% to 30%. Bonuses for bankers advising on mergers and acquisitions may rise by 15% to 20%.
The expected increases follow a strong year for bank profits. Worldwide investment banking fees in the first nine months of the year reached their highest level since 2021. JPMorgan Chase, Goldman Sachs and Morgan Stanley reported significant increases in investment banking revenue earlier in the year.
Some analysts caution that 2026 could mark a peak for profits and compensation. They see the potential for a slowdown in 2027 amid interest rates and market uncertainty.