Fixed-Income Bonuses Seen Falling as Asset Managers Gain

Wall Street’s bonus pool may rise as much as 10 percent this year for asset managers while fixed-income traders could see a 15 percent cut, according to compensation consultant Johnson Associates Inc.

Incentive pay will probably rise the most in investment-banking advisory services, at private-equity firms and prime brokerages and for asset and wealth managers, Johnson said in a May 12 report. Financial firms are poised to boost assets under management and benefit from an increase in mergers and acquisitions, and independents facing fewer regulations may win business from larger banks, Johnson said.