Banker Bonuses Set to Drop as Tariffs Cause Economic Uncertainty

The outlook for some Wall Street bonuses looks grim, with an expected pullback in payouts after a strong 2024 amid economic turmoil caused by the US trade war and geopolitical tensions.

Investment bankers, hedge fund employees and asset- and wealth-management professionals are all poised to see lower year-end incentive pay in 2025, according to a report Thursday from compensation consultant Johnson Associates Inc. It’s a sharp reversal from last year, when payouts swelled and industry profits soared.