Bankers Brace for Bonus Cuts With No Relief Seen Next Year (1)

Bonus season on Wall Street is looking grim for bankers in an industry hobbled by rising interest rates, bank failures and a dealmaking slump. Next year will probably be no better.

Merger advisers could see their payouts for 2023 slide as much as 25%, according to a report Tuesday from compensation consultant Johnson Associates Inc. At regional banks, year-end compensation for professionals in retail and commercial businesses could fall 10% to 20%, the company found.

“Pay statements will be down moderately for most, in another disappointing year,” Alan Johnson, managing director of Johnson Associates, said in an interview. Inflation ...