US investment banking revenues climbed 37% in 2024, outpacing global growth of 30% and reversing the slowdown seen in 2023.
Yet despite this renewed momentum, many investment bankers are finding their compensation hasn’t fully matched their firms’ performance.
Here’s a detailed look at how pay is shaping up on Wall Street in 2025.
Earnings up, paychecks less so
2024 marked a strong comeback for Wall Street. But much of the revenue growth came from capital markets activity, including equity and debt issuances, rather than the higher-margin M&A transactions that drive the biggest payouts.
M&A advisory revenue rose modestly by 10–20%, supported by improving macroeconomic conditions, such as easing inflation, Federal rate cuts, and growing confidence in the US political climate.
According to Mergers & Inquisitions, most US bankers saw total compensation increases in the range of 10–15% year-over-year. A respectable gain, but still lagging behind the pace of revenue growth.
| Position | Base Salary (USD) | Total Compensation (USD) |
|---|---|---|
| Analyst | $100k–$125k | $160k–$210k |
| Associate | $175k–$225k | $275k–$475k |
| Vice President | $250k–$300k | $500k–$700k |
| SVP / Director | $300k–$350k | $600k–$800k |
| Managing Director | $400k–$600k | $800k–$1.6M+ |
One key reason for the restrained salary increases is that many banks implemented major base pay hikes during the post-COVID talent war of 2022. At that time, staff turnover spiked and technology firms were aggressively recruiting banking talent.
Today, with fewer departures to tech and a steadier labor market, firms are adopting a more measured approach to compensation.
Who’s paying the most?
nvestment banking is known for competitive salaries, although total compensation varies widely between firms. A report from eFinancialCareers found that boutique banks like Evercore, Lazard, and Moelis top the list with average packages of about $494k, driven by $226k base salaries and bonuses exceeding $269k.
Among larger global banks, Standard Chartered surprises with the second-highest pay at $473k, supported by base salaries averaging $238k, and Morgan Stanley closely follows at $456k.
At the lower end, JPMorgan ($312k) and BNP Paribas ($308k) fall behind peers. Goldman Sachs ($264k) experienced a significant drop in average compensation this year, reflecting structural changes and a growing number of employees in lower-cost locations.
| Rank | Bank | Average Total Compensation | Average Salary | Average Bonus |
|---|---|---|---|---|
| 1 | Boutique Banks | $494k | $226k | $269k |
| 2 | Standard Chartered | $473k | $238k | $235k |
| 3 | Morgan Stanley | $456k | $219k | $237k |
| 4 | Société Générale | $402k | $202k | $200k |
| 5 | UBS | $395k | $209k | $186k |
| 6 | Bank of America | $382k | $227k | $155k |
| 7 | Barclays | $350k | $215k | $135k |
| 8 | Deutsche Bank | $330k | $204k | $125k |
| 9 | Citi | $329k | $200k | $129k |
| 10 | Santander | $323k | $156k | $166k |
| 11 | JPMorgan | $312k | $197k | $115k |
| 12 | BNP Paribas | $308k | $161k | $147k |
| 13 | Goldman Sachs | $264k | $144k | $119k |
| 14 | NatWest | $226k | $149k | $77k |
| 15 | HSBC | $213k | $138k | $75k |
Big bucks at the top
While average compensation for Goldman Sachs bankers is on a downward trend, the same can’t be said for the firm’s top executives. Earlier this year, CEO David Solomon and President John Waldron were each awarded $80 million in retention bonuses.
These awards, which vest over five years, were designed to deter rivals from poaching the firm’s leadership amid a critical period of strategic realignment and market uncertainty.
According to research published in June by Johnson Associates, CEOs at boutique investment banks have seen their pay jump by 40%, with average compensation reaching $14.2 million.
At major banks, the increases are even greater: Bank of America’s Brian Moynihan earned $35 million, up 21% year-over-year, while Citi’s Jane Fraser received $34.5 million — a 33% rise.
Bonuses remain key to retention
The average investment banking bonus rose 25% year-over-year, increasing from $138,000 in 2023 to $173,000 in 2024, based on data from eFinancialCareers.
Bonuses remain a crucial lever for both rewarding performance and retaining talent. Most major banks defer a significant portion of bonuses over multiple years, creating a strong incentive for staff to stay.
This dynamic also influences hiring practices. To attract top talent, banks need to provide substantial upfront payments to compensate for deferred earnings. At Deutsche Bank, all compensation above approximately $575k is fully deferred, meaning high performers risk forfeiting a significant portion of their pay if they switch firms. This makes generous incentives essential for securing candidates.
Traders poised for a windfall
Bonus growth on Wall Street in 2025 is expected to vary widely, with trading roles projected to see the biggest increases, according to Johnson Associates.
Equities desks are expected to see bonuses jump 20–30%, while fixed income teams follow closely at 10–20%, fueled by ongoing market volatility and strong bond performance. Debt capital markets staff may also benefit, with payouts rising 5–15%.
Meanwhile, investment bankers are likely to experience more modest changes. M&A bonuses are expected to increase by only around 5%, while equity capital markets professionals may see a 5% decline, reflecting ongoing weakness in IPO activity.
| Role | Projected Bonus Growth by end of 2025 | Key Drivers |
|---|---|---|
| Equities desks | 20–30% | Market volatility |
| Fixed income teams | 10–20% | Strong bond performance |
| Debt capital markets | 5–15% | Ongoing demand |
| M&A investment bankers | ~5% | Modest market growth |
| Equity capital markets | -5% (decline) | Weakness in IPO activity |
Staff cuts and selective hiring
Despite stronger revenues, many US banks remain cautious about headcount growth. Rather than launching hiring initiatives, firms are prioritizing margin protection and strategic resource allocation.
Citi is reportedly planning selective senior-level cuts this month, targeting directors and managing directors, even as its M&A revenues surged 52% year-over-year in Q2 2025 and equity capital markets revenues rose 25%.
Meanwhile, Goldman Sachs has decided against a second round of cuts this year due to a better-than-expected recovery in investment banking fees and sustained trading strength. The bank continues to balance staffing levels with cost control, leaving the door open for further adjustments if economic conditions change. Hiring at Goldman remains highly competitive, with the firm accepting just 1% of the 875,000 applications it receives annually.
This cautious approach reflects the unpredictability of today’s market. As JPMorgan CEO Jamie Dimon recently noted, investment banking pipelines can “grow and shrink” rapidly in response to geopolitical events. Bringing in new talent requires a delicate balance, as firms must be ready to scale quickly when needed but avoid overextending themselves during economic downturns.
Stay up-to-date on salary news with M&A Community
M&A Community is the best source for information on banking salaries and bonuses around the world, helping professionals benchmark compensation and track industry trends.
For more M&A insights, subscribe to our UK weekly newsletter, where we bring you the latest news and the most interesting events.
