The countdown to Wall Street's bonus season has ended, with major banks preparing to distribute year-end compensation. Morgan Stanley is set to begin notifying employees of their 2025 bonuses as early as January 7, kicking off a period of high anticipation across the financial sector. Industry estimates suggest that payouts will be substantial, rising across almost every line of business.
This positive outlook is supported by a strong recovery in dealmaking and mergers and acquisitions (M&A) activity during the second half of the year. Global investment banking revenue surpassed $100 billion in 2025, marking the second-highest total since 2021. As banks prepare to report impressive fourth-quarter results, employees are watching closely to see how their performance translates into compensation.
After a volatile start to the year, the financial sector finished strong. The momentum from increased dealmaking is expected to directly impact bonus pools at the nation's largest banks. Dealgiving and M&A activity picked up significantly in the second half of 2025, allowing banks to close out the year on a high note.
Global investment banking revenue exceeded $100 billion, according to data from Dealogic. This figure represents the second-highest revenue total recorded since 2021. The resurgence in activity has set the stage for impressive fourth-quarter earnings reports, which are scheduled to begin next week.
Compensation consultancy Johnson Associates released a November report indicating that year-end bonuses are expected to rise across almost every business line. Financiers are likely to be pleased with the results, though some sectors will see more significant gains than others.
The report ranks the expected increases as follows:
Traders are projected to come out on top, with potential increases of up to 25%.
Mergers advisors are expected to see the next highest gains.
Wealth managers follow closely behind.
While the financial rewards are significant, the bonus season often serves as a litmus test for employee satisfaction. Some workers may feel so snubbed by their payout that they decide to leave their banks for good once their check clears. Conversely, others may leave to pursue new opportunities after receiving a well-financed boost.
Banks typically keep bonus information confidential until the final moment. However, dates are subject to change. The following schedule outlines when employees at the nation's largest banks are expected to learn their 2025 bonus figures.
Employees will begin receiving bonus numbers on January 16. Goldman Sachs announced $15 billion in net revenue in the third quarter, marking its third-highest quarterly total.
Communications regarding bonus numbers are set to begin on January 26.
Citi
Citi will start sharing bonuses in the second half of January. The firm's investment banking unit has become increasingly ambitious under its new chief, Viswas Raghavan, a former JPM veteran banker.
The 2025 bonus season reflects a year of resilience and growth for Wall Street. With major banks like Morgan Stanley, Goldman Sachs, and JPMorgan preparing to announce record or near-record revenues, the compensation packages are expected to be robust. As the announcements roll out throughout January, the financial industry will be watching to see how these payouts influence the labor market and the broader economic landscape.
