• Goldman Sachs (GS), JPMorgan Chase (JPM), and Bank of America (BAC) are increasing their 2025 year-end bonus pools by at least 10%, driven by a recovery in dealmaking and market volatility in the second half of 2025.
  • Announcements are underway or imminent in early January 2026, with Goldman Sachs starting January 16-19, JPMorgan the week of January 17-20, and BoFA on January 25-26, per insider schedules from compensation experts and recruiters.
  • The move reflects broader Wall Street momentum, with Johnson Associates forecasting bonuses at their highest since 2021, signaling a robust industry recovery after prior years of cuts.

Goldman Sachs, JPMorgan Chase, and Bank of America are set to reward employees with fatter paychecks as 2025 bonus pools rise by at least 10%, according to people familiar with the matter. The increases, fueled by a late-year surge in M&A activity and trading revenues, mark a second straight year of gains for Wall Street's elite, building on a 2024 rebound that followed a period of layoffs and disinflation.

Efforts to finalize the bonuses are in full swing, with Goldman Sachs kicking off its announcements between January 16 and 19, JPMorgan following the week of January 17-20, and BoFA wrapping up on January 25-26. Payouts are expected shortly after, as banks aim to lock in top talent amid a competitive landscape. "This is a clear signal that the dealmaking engine is back in gear," said one compensation expert, who spoke on condition of anonymity. "After a volatile start to 2025, the second half really delivered, and banks are responding accordingly."

At Bank of America, the investment banking bonus pool is expanding significantly, with top dealmakers seeing hikes of around 20%, though mid-level staff may see flat to prior-year payouts. The bank generated approximately $130 million in fees from deals like Norfolk Southern, contributing to a Q4 where investment banking fees held steady and markets revenue climbed by high single-digits to 10%. Meanwhile, Goldman Sachs, which posted a third-highest quarterly net revenue of about $15 billion in Q3 2025, is leveraging its strengths in M&A advisory and trading to bolster bonuses. JPMorgan, the largest U.S. bank by assets, has performed strongly across business lines despite the year's volatility, according to insiders.

Traders across these institutions could see rises of up to 25%, outpacing M&A advisors and wealth managers, as market swings in late 2025 provided ample opportunities. Johnson Associates projects that Wall Street bonuses overall will hit their highest levels since 2021, driven by increased deal volume and ongoing economic momentum. This comes as U.S. banks prepare to report robust Q4 earnings, with no major leadership changes or restructurings noted in recent results.

The bonus hikes are likely to boost employee retention and morale, particularly for high performers, though they may also spur lateral hiring once payouts are distributed. Recruiting trends suggest elite banks will wrap up their hiring by February 2026, with global and middle-market firms accelerating efforts afterward. "If payouts disappoint, we could see a talent exodus," noted a recruiter familiar with the schedules. "But right now, the mood is optimistic."

Historically, this uptick follows flat or down bonuses in 2023-2024, a period marred by bank failures and sluggish disinflation. The 2025 increases echo the peak of 2021, when high deal activity similarly drove compensation higher. Looking ahead, the short-term outlook includes compressed hiring at elite banks through early 2026, with a potential pickup post-bonuses. Long-term sustainability hinges on whether M&A pipelines remain robust, though Johnson Associates sees continued strength ahead.

In related developments, Morgan Stanley (MS) has already led the charge with announcements on January 7 and 13, while Citigroup (C) is set to follow in mid-January. Broader Wall Street trends show traders at Goldman and BoFA flat-to-up slightly, with equity underwriting and retail banking exceptions to prior slumps. Public reactions have been muted so far, but the bonuses underscore an industry recovery that's gaining traction.

Correction: An earlier version misstated the timing of BoFA's announcements; they are scheduled for January 25-26, not January 24-25.