Goldman, JPMorgan Bankers See Bonus Pools Rise at Least 10%

JPMorgan Chase & Co., Goldman Sachs Group Inc. and Bank of America Corp. boosted their bonus pools for bankers and traders by at least 10%, as the businesses benefited from a banner year in dealmaking and market activity.

Executives began communicating the compensation decisions to middle managers in recent weeks, as is common this time of year, the people said. The average figures described by insiders don’t reflect the sweetest rewards in store for rainmakers, or the disappointment in store for those tagged as underperformers.

The payouts reflect a strong year for the nation’s largest banks, which collectively posted their largest annual profit since 2021. Volatility tied to Trump’s economic policy announcements paved the way for a banner year for traders — particularly in equities. At the same time “animal spirits” returned to the deal landscape after a tariff-induced pause in the first half of last year.

WATCH: JPMorgan Chase, Goldman Sachs, and Bank of America are boosting bonus pools by at least 10%.

Last year’s combined revenue for the three firms’ investment-banking businesses was $25.7 billion, up 12% from the prior year, while their trading revenue was $87.7 billion, a 16% increase.

But firms are also focused on managing their expenses as artificial intelligence helps drive efficiencies, prompting increased scrutiny of staffing and compensation structures. In Europe, HSBC Holdings Plc is handing some bankers little or no bonuses as the British lender seeks to emulate its Wall Street rivals with a more hard-edged, “eat-what-you-kill” stance.

Representatives for Bank of America, Goldman and JPMorgan declined to comment.

Paris-based BNP Paribas SA is considering raising bonuses for its global markets division by close to 10%, giving traders some of the biggest increases across the bank after a record year for the division, according to people familiar with the matter. But the bonus pool for the firm as a whole is set to expand only marginally, some of the people said, with some global banking units, including mergers and acquisitions, likely to see smaller payouts after missing budget targets.

Read More: BNP Paribas Considers Raising Trader Bonus Pool by Close to 10%

Wall Street’s year-end rewards are notoriously volatile as the industry cycles through booms and busts. When times are good, individual windfalls can stretch into the millions of dollars — well above what bankers and traders might reap from their salaries.

Compensation consultants have predicted for months that investment bankers, traders and asset- and wealth-management professionals would see healthy bonus increases this round. Investment bankers were expected to see 10% to 15% boosts in their incentive pay, according to a November report from compensation consultant Johnson Associates Inc.

Read More: Wall Street Bonus Pool to Grow as Stock Rally Defies Tariff Woes

A year ago, Wall Street bonuses also jumped across the board, with the total pool for payouts rising to a record $47.5 billion as industry profits soared, according to estimates by New York State Comptroller Thomas DiNapoli. The average annual bonus rose by almost a third, to $2 Katherine Doherty joins to discuss.

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