Investment Bankers Brace For Lower Compensation Amid Lower Deal Making Activity

2022 was not a good year for investment banking, as a slump in deals led to declines in fees and revenues at all major institutions.
Due to the challenging economic environment, several Wall Street banks resorted to cutting jobs to manage costs.
Related: A Week After Morgan Stanley Layoffs, Goldman Sachs Axes 4,000 Jobs.
Recruiters expect year-end bonuses for bankers in New York and London to be 30% to 50% lower, while some may receive none.
This year, the pace of mergers and acquisitions and stock offerings slowed significantly as debt financing markets collapsed and stock market volatility hurt valuations.
For U.S. managing directors at Goldman Sachs Group Inc GS, compensation for 2022 might fall 40% - 45% on average, Reuters reported citing data by Sheffield Haworth, a recruitment firm for top executives.
At rival banks, including Morgan Stanley MS, JPMorgan Chase & Co's JPM, Citigroup Inc C, and Bank of America Corp BAC, the average pay for senior bankers is expected to fall between 30% - 40%.