Bonus season

Mateo

14 Dec 2024 • 1 min read

Global financial institutions are poised to increase bonuses in 2024, marking the first significant rise since 2021, according to a report by compensation consultancy Intuitive Consulting.

This uptick is attributed to a resurgence in dealmaking, central banks easing monetary policies, and equity markets reaching record highs. Intuitive Consulting’s founder noted, “This year has exceeded expectations, and the industry is optimistic about 2025, particularly with the prospect of higher M&A activity.”

While bonuses are set to grow, they will remain below the exceptional highs of 2021, which was an anomaly driven by extraordinary revenue and compensation levels.

Investment Banking Bonuses by Sector

• Debt Underwriting: Investment bankers in debt capital markets are expected to see the largest bonus increases, ranging from 25% to 35%, reflecting a global resurgence in corporate bond issuance.

• Equity Capital Markets: Professionals in this sector could experience bonus increases of 15% to 25%, buoyed by robust activity in IPOs and follow-on offerings.

• Mergers & Acquisitions (M&A): Advisors are projected to see more modest gains, with bonuses rising by 5% to 10%, as the pace of recovery in dealmaking remains uneven across regions.

Trading Professionals

• Equity Sales and Trading: Professionals in this area can expect bonus increases of 15% to 20%, driven by stronger equity markets.

• Fixed Income: Traders are projected to see bonuses rise by 5% to 10%, benefiting from volatility in global bond markets.

Retail and Commercial Banking

Not all sectors will experience increased compensation. Retail and commercial bankers may face stagnant or declining bonuses this year, as growth in consumer banking and traditional lending markets remains subdued.

These trends highlight the variability in financial sector performance across different regions and segments. While global conditions have improved significantly in 2024, the extent of bonus recovery reflects the uneven pace of economic recovery and market-specific dynamics.

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