Consulting firm: Trump's tariffs impact the market, Wall Street bonuses could decrease by up to 20%

A report from the compensation consulting firm Johnson Associates stated that due to economic and geopolitical uncertainties hindering transactions, Wall Street is expected to see a decrease in bonuses this year. Investment banking activities have dried up this year as companies have delayed IPOs and mergers. After the market turmoil caused by Trump's tariff announcement last month, companies have been hesitant to take action. The consulting firm predicts that bonuses this year may decrease by up to 10%. "Bankers are worried and fearful of a paralysis occurring, where client activities freeze, companies do not invest or buy/sell, and companies cannot generate the fees they rely on to survive. This is currently the biggest concern," said Alan Johnson, the founder of Johnson Associates. "The longer the uncertainty persists, the greater the impact." He said that in a worst-case scenario, if economic activity slows down leading to a halt in transactions, bankers' bonuses could decrease by up to 20%. If the tariff issue becomes clearer and geopolitical tensions ease, bonuses may stay flat or slightly increase.