Annual bonuses on Wall Street often serve as a barometer for an employee’s performance and standing within their firm. However, the opaque nature of bonus calculations raises questions about how individual packages compare with industry norms. To address this, Prospect Rock Partners conducted a comprehensive survey involving over 900 investment banking professionals regarding salary and bonus expectations for 2024.

Survey Overview and Methodology

Conducted between December 2024 and February 2025, the survey was spearheaded by Meridith Dennes, managing partner at Prospect Rock Partners. This marks the third consecutive year the firm has gathered this data. Dennes noted the traditionally complex nature of Wall Street compensation structures, stating, “The whole point of the survey is that compensation is much more nuanced than what people talk about.”

Compensation Growth Across Different Banking Categories

The findings reveal substantial compensation increases, particularly at elite boutique banks such as Evercore, Lazard, and Centerview. Overall, total compensation for this sector rose between 11% and 68%. For instance, first and second-year associates at these firms saw average pay increases of 31% and 33%, respectively. Notably, managing directors in elite boutiques reported a significant rise in compensation, averaging over $1.7 million in 2024, up from approximately $1 million in 2023—a 68% increase.

The current market environment remains uncertain due to various geopolitical risks and fluctuating interest rates, leaving many to speculate whether the anticipated rebound in mergers and acquisitions will take place.

However, hiring in the investment banking sector has continued to rise, with Dennes observing an increase in job openings. She remarked, “I am seeing an increase in job requisitions coming in, but it’s much harder to find talent than what people want.”

Compensation Breakdown by Rank

According to the survey data, the compensation landscape for 2024 is broken down as follows:

• First-Year Analysts: Average base pay surpassed $110,000, with bonuses averaging around 50% of their base salary.
• Vice Presidents and Senior Ranks: Generally reported bonuses equal to or exceeding their base compensation, especially those in leadership roles.
• Managing Directors: Averaged bonuses exceeding $1.7 million, correlating with an increase in deal volume and revenue generation.

Compensation at Leading Banking Categories

Bulge-Bracket Firms

Bulge-bracket firms, which include major players such as Goldman Sachs, JPMorgan, and Morgan Stanley, reported base salaries ranging from $176,000 to $221,000 for associates in 2024, with bonuses also trending upward compared to the preceding year.

Middle-Market Banks

Middle-market banks, like William Blair and Piper Sandler, typically cater to clients with revenues under $1 billion. The average base pay for associates in this category is slightly below that of bulge brackets, although their bonuses are competitive.

Elite Boutiques

Elite boutique firms continue to dominate in terms of pay scales, with associates reporting the highest average compensation compared to their counterparts in both bulge-bracket and middle-market firms.

Additional Insights on Compensation Trends

One noteworthy trend is the correlation between compensation levels and deal activity. Dennes emphasized that “this recovery appears most pronounced at elite boutiques, where compensation is directly tied to deal performance and revenue generation.” Despite an overall uptick in 2024 deal-making—totaling over $3.16 trillion—it remains a few percentage points shy of 2022’s peak.

Conclusion

As Wall Street navigates a complex financial landscape, the implications of these compensation trends can serve as critical indicators for both firms and employees. Understanding this nuanced compensation structure will be essential as the year unfolds and market dynamics evolve.