NEW YORK (MarketWatch) -- Wall Street bonuses are on track to exceed last year's totals, including a 20% to 25% surge for equity bankers, according to a forecast issued Monday by compensation-consulting firm Johnson Associates Inc.
Equity units will benefit from higher volumes, valuations and international results. A strong year for proprietary trading is also expected to boost compensation payouts. Last year's big winners in the bonus bonanza, mergers and acquisitions bankers, can expect year-end increases of about 25% as well, Johnson said.
Globally, Goldman Sachs Group, Morgan Stanley, Citigroup Inc., Credit Suisse Group, UBS AG and J.P. Morgan Chase & Co.were among the industry leaders in equity trading and underwriting in the first half of the year.
The same firms, including Merrill Lynch & Co., led a record first half in M&A advisory, according to Dealogic.
Overall compensation is expect to rise about 15%, with retail bankers bringing up the rear with 5% to 10% increases. Johnson also estimates that employment is up 3% to 5% from the same period last year.
Uncertainty about the global economy, oil prices and inflation are tempering the amount of money big banks are setting aside for compensation.
In 2005, the average bonus on Wall Street was $125,500, up 10% from 2004 -- with top bonuses going to mergers and acquisitions bankers, who saw deal volume rise 28% in 2005. Bankers generally earn base salaries of $150,000 to $300,000, according to estimates.
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