Money management professionals can expect to see a 5% to 10% increase in bonus payouts from last year, said projections from compensation consultant Johnson Associates.
This marks the first significant jump in incentive payments across most financial services industry sectors since 2013, Johnson Associates' quarterly analysis said. Johnson Associates' previous projection of year-end bonus payouts for money managers ranged from flat to up 5% from last year, based on its compensation report released in August.
Year-end bonuses across the financial services industry had been flat or declined in each of the last three years, according to Johnson Associates.
Incentive payouts for professionals in private equity are expected to rise 10% to 15%, while professionals in the hedge fund industry can expect an increase of about 5% from last year's bonus.
Alan Johnson, managing director of Johnson Associates, attributed the rise in expected bonuses to "a strong stock market and a favorable political and regulatory environment" in a news release announcing the firm's estimates.
The projections are based on third-quarter trends in the financial services industry.