Equities traders on Wall Street are expected to take home bigger bonuses this year, compared with their industry peers, as a global rally in stocks shows little signs of slowing, according to a report by compensation consulting firm Johnson Associates. Bonuses may jump by up to 20 percent for employees in the US equities industry, compared with 10 to 15 percent projected by the firm at the end of the first quarter in May, the report showed.
In the most recent quarter, the top five Wall Street banks, including JPMorgan Chase & Co and Citigroup, collectively recorded a 10 percent rise in market trading revenue, with much of the rebound driven by equities.
Johnson Associates maintained its target of 5 percent to 10 percent hike in bonuses for employees in fixed income businesses, where money is generated from trading bonds, commodities and currencies. The asset management sector may see up to a 10 percent hike in incentives this year, the firm said, revising its prior estimate of 5 percent.
Johnson Associates said financial services firms are expected to broadly increase bonuses this year. "Geo-political uncertainty and market volatility are key 2018 incentive wildcards," it added.