The Reality Behind Banker Bonuses
Financial services professionals are eagerly anticipating their bonuses in 2025, with expectations of a 50% increase on average. However, a closer look reveals a disparity in bonus expectations among different banks. For instance, employees at DBS are anticipating significantly higher bonuses compared to those at Barclays. Moreover, there is a notable difference in bonus expectations between front-office, middle-office, and back-office professionals.
Optimism in Finance and Operations
Employees in back and middle-office functions of finance and operations are particularly optimistic about their bonuses for the upcoming year. Professionals in these areas, which include audit and treasury services, are expecting their bonuses to almost double post-2025.
One respondent, a Citigroup operations VP based in Asia, boldly stated, “I will get 150% more,” expressing confidence in both his bonus prospects and job security. However, not everyone shares this level of optimism. A US-based JPMorgan operations VP voiced concerns about performance-based bonuses, highlighting the perceived unfairness in the financial industry towards middle management.
Varying Expectations Across Specializations
Research professionals in banks are the least optimistic about their upcoming bonuses, with an expected increase of 38% compared to the previous year. Despite this, there are mixed sentiments within the industry. An HSBC associate in Asia mentioned that the research department had made strategic resource cuts aligning with broader goals, leading to a bonus increase expectation of 30%. However, internal surveys revealed discontent among the markets team, including research, regarding compensation and well-being.
Contrastingly, despite a successful year in M&A, investment bankers, particularly those in M&A and capital markets, are more reserved in their bonus expectations compared to finance and operations professionals. Equity capital markets bankers are notably optimistic, anticipating a 67% increase in bonuses. Conversely, some professionals, like an M&A VP in London, anticipate only a single-digit bonus increase and are actively seeking new job opportunities with better bonus prospects.
Conclusion
As the financial services industry gears up for bonus season in 2025, professionals across various specializations hold differing expectations. While some are optimistic about substantial bonus increases, others remain cautious due to performance-based structures and industry dynamics. The disparity in bonus expectations among different banks and job roles underscores the nuanced nature of compensation in the financial sector.
For more insights on bonus expectations by sector, you can refer to the original article here.
