Trump's economic policies could lift Wall Street bonuses in 2017: Study

Wall Street FOXBusiness

(Reuters)

Wall Street financiers could be seeing green this holiday season.

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Year-end incentive payments, including bonuses and equity awards, are expected to jump across the board this year, in their first significant move higher since 2013, according to a new survey by consulting firm Johnson Associates.

Among the factors leading to higher year-end payouts are the policies of the Trump administration and the robust performance of stocks in 2017.

“Several factors including a strong stock market and a favorable political and regulatory environment are contributing to one of Wall Street’s healthiest years recently,” Alan Johnson, managing director of Johnson Associates, said in a press release. “As a result, incentives will be up noticeably, especially in asset management and investment banking.”

Investment banking underwriting professionals and private equity professionals are expected to receive the largest end-of-year incentives, increasing anywhere between 15% to 20% and 10% to 15%, respectively, over the same period last year. Asset managers and investment bankers are forecast to receive bonuses between 5% and 10% higher.

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The only professions in the sector that could see no change, or even a decline, when compared with last year’s bonus amounts are fixed-income traders and equities traders.

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According to Johnson Associates, which closely monitors compensation trends, this would be the first meaningful increase in incentive payments in four years.

The Dow Jones Industrial Average is up more than 18% so far this year, while the S&P 500 has gained more than 15% and the NASDAQ more than 11%. The SPDR exchange-traded fund that tracks the financial sector is up nearly 13% year-to-date.

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