Wall Street Poised for Bonus Increases in ‘Year of the Bank’

It’s a lucrative time to be a banker, for now.

Wall Street bonuses are projected to jump for the third year in a row as market volatility fuels trading demand and dealmaking makes its long-awaited comeback. For investment bankers who advise corporate clients on deals, incentive pay is poised to be up 10% to 20% or more from a year earlier, according to Johnson Associates Inc.

Bankers who help companies raise equity are likely to see a similar bump, of as much as 20% or more, the compensation consultant said in a report Thursday. That expected increase follows a banner ...