Wall Street Pay Set to Climb Again as Volatility and M&A Surge

Wall Street bonuses are projected to jump for the second year in a row as market volatility fuels trading demand and dealmaking makes its long-awaited comeback.

Investment bankers, traders and wealth-management professionals are all poised to see increases in their year-end incentive pay, according to a report Wednesday from compensation consultant Johnson Associates Inc. Equity traders who help investors position their stock bets may see the biggest gains, with payouts set to rise as much as 25%, fueled by market swings.

“This is an unusually positive year across all sectors,” Alan Johnson, managing director of Johnson Associates, said in ...