Bankers advising on M&A are likely to their bonuses decline as much as 20 per cent this year, while their counterparts in underwriting will probably have the largest drop, with their incentive pay plunging as much as a 45 per cent, according to a closely watched report from compensation consultant Johnson Associates Inc. released Tuesday.“It's a cyclical business, and it fell off of a cliff this year,” Alan Johnson, managing director of Johnson Associates, said in an interview.
The same market tumult that's hurt dealmakers has been good for equity and debt traders. As a result, equity traders are likely to see their incentive payments stay the same while their fixed-income colleagues are set to get a 15 per cent to 20 per cent increase. Elsewhere in finance, bonuses are likely to be lower. Those working in asset management may see a decline of 25 per cent, while incentive pay for wealth managers is poised to drop of 15 per cent to 20 per cent, Johnson Associates said.