Banker Bonuses Set to Drop as Tariffs Cause Economic Uncertainty

The outlook for some Wall Street bonuses looks grim, with an expected pullback in payouts after a strong 2024 amid economic turmoil caused by the US trade war and geopolitical tensions.

Investment bankers, hedge fund employees and asset- and wealth-management professionals are all poised to see lower year-end incentive pay in 2025, according to a report Thursday from compensation consultant Johnson Associates Inc. It’s a sharp reversal from last year, when payouts swelled and industry profits soared.

“We started 2025 with momentum and optimism, which has quickly changed,” Alan Johnson, managing director of Johnson Associates, said in an interview. ...