Wall Street banks forecast record bonuses for 2026

Compensation consultancy Johnson Associates projects a sharp rise in bonuses for major Wall Street banks in 2026. The firm expects equity traders and equity‑capital‑markets bankers to see bonuses increase by 20‑30%, while investment bankers working on M&A deals could receive 15‑20% higher payouts. The boost is driven by strong equity market performance, heightened trading volume, and continued deal activity, including AI‑related initiatives. Fixed‑income executives may see modest gains of 7.5‑12.5%, whereas private‑credit firms are projected to face flat or slightly lower bonuses due to recent fraud‑related redemptions. Johnson Associates describes the year as the “Year of the Bank,” highlighting that large banks are set to outpace smaller competitors in compensation growth.