Wall Street Companies They are expected to pay higher bonuses this year in what would be the first increase since 2021, according to a report from compensation consulting firm Johnson Associates.

Bonuses are expected to rise after recent months saw an increase in deal-making, the Federal Reserve cutting interest rates and rising stock market at record levels.

“This year has been surprisingly good and the industry is quite optimistic about 2025, especially with the potential to announce more M&A deals,” company founder Alan Johnson told Reuters.

Although bonuses are increasing for the first time in three years, they will remain below the record levels they reached in 2021, when, Johnson noted, there was “abnormally good” income and compensation.

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Johnson Associates analysis found that Wall Street firms are expected to increase bonuses to the highest levels since 2021. (Michael M. Santiago/Getty Images/Getty Images)

Investment bankers working in the debt subscription The sector will see the largest increase in bonuses compared to its peers in other fields, increasing by 25% to 35% due to what Johnson Associates noted as a revenue boom due to growth in debt issuance.

Equity subscribers are expected to see bonuses increase by 15% to 25% compared to last year, and revenue to increase significantly from 2023 despite a slow IPO marketnoted the firm.

Traders are likely to see bonuses increase by 15% to 20% amid increased activity in the stock markets and elevated levels of volatility.

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The Federal Reserve’s rate cuts have helped spur more activity in the market. (Michael Nagle/Bloomberg via Getty Images/Getty Images)

Bonuses for company managers are expected to rise by 10% to 15% amid a rise in all business segments and a fall in provisions for credit losses.

Asset Management and wealth management Professionals are expected to see bonuses increase by 7% to 12% from last year due to inflows and market appreciation.

Bankers advising on mergers and acquisitions Bonuses are expected to increase by 5% to 10%, the same for fixed income traders, corporate staff and insurance.

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Wall Street bankers who underwrite debt are expected to get the biggest boost in bonuses. (Yuki Iwamura/Bloomberg via Getty Images/Getty Images)

Other areas in the banking sector Bonds are expected to remain relatively stable or even decline due to sluggish activity in those market segments, according to the report.

Real estate Bankers’ bonuses are expected to remain stable after a multi-year crisis that has seen the market bottom out, Johnson Associates wrote.

Bonuses for retail and commercial bankers are likely to decrease by 5% or remain stable due to decreased provisions for loans and credit losses.

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Reuters contributed to this report.