JPMorgan, Goldman, Bank of America Boost Bonus Pools by at Least 10%

Summary

Bloomberg's Katherine Doherty reports that JPMorgan Chase, Goldman Sachs, and Bank of America are increasing bonus pools by at least 10% after a strong year in M&A and trading. M&A activity is returning and may continue into the year ahead, but banks are balancing talent retention against expense discipline. AI adoption in banking is still early and could help control costs.

• JPMorgan Chase, Goldman Sachs, and Bank of America are boosting bonus pools by at least 10%.
• Strong 2025 M&A and trading activity drove higher compensation.
• Rainmakers may receive nearly double the average increase, while underperformers may get nothing.
• M&A is returning and signs suggest momentum continues.
• Banks face tension between retaining talent and controlling expenses.
• Trading desks had a strong 2024 and an even better 2025.
• AI adoption in banking is early; banks may build in-house or partner.
• Efficiency is a key hurdle as banks decide how to spend.