JPMorgan Chase & Co and Goldman Sachs could reward investment bankers by increasing bonus pools up to 50 percent, following a trading boom this year.
Following recent meetings to discuss and set salaries for the year, JPMorgan plans to increase the bonus pool by 40% while Goldman Sachs is considering up to 50%, sources told Reuters, which d ‘first reported the news.
The news comes a month after clearing house Johnson Associates predicted bonuses for bankers on Wall Street would be the highest this year since 2009, and at the end of a year that has seen record levels of activity. negotiation with the reopening of economies and optimism. came back for a while.
Transactions reached new highs this year, as the momentum seen each quarter continued unabated and last month propelled the global M&A market to a new all-time high of $ 5,000 billion in transactions.
In November, global transactions topped $ 5,000 billion in 2021, 40% ahead of all of 2020, according to new data from Refinitiv.
Pent-up demand during the pandemic has pushed negotiators around the world into an unprecedented frenzy, with the number of deals announced so far this year reaching an all-time high of over 52,000 – 22% more than last year, and more than any other. the other year since Refinitiv started tracking data in 1980.
Strong demand is also expected to continue through much of the new year, with a survey released last week indicating that 90% of traders expect stronger activity in the next 12 months.
Much of that demand is expected to be driven by struggling deals and cheap UK companies, as Schroders’ analysis indicates that on average UK companies are undervalued by around 30%.