Bank Bonuses Expectations for 2025
The year 2025 is shaping up to be a bumper year for bank bonuses, with compensation consultancy Johnson Associates expecting bonuses to increase by up to 25% across different sectors. However, professionals within the industry have even higher expectations, with some anticipating a 50% increase in bonuses.
Optimism Across Sectors
According to a survey conducted by eFinancialCareers, professionals in private credit and private equity are particularly optimistic, expecting bonuses to rise by 68% and 61%, respectively. On the other hand, those in asset management firms have more modest expectations, with a predicted 32% increase in bonuses.
Despite challenges faced by the sector, such as collapses in private credit and a decline in exits in private equity, optimism remains high. Some individuals acknowledge the difficulties in their sectors, with one respondent from the UK expecting a decrease in bonuses due to fundraising challenges in renewable energy.
Buy-side vs. Sell-side
Interestingly, professionals on the buy-side, including hedge funds and asset management firms, are more optimistic about bonus increases compared to those on the sell-side, such as investment banks.
Overall, the survey results indicate a mix of realistic and overly optimistic expectations regarding bank bonuses for 2025.
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