US banker bonuses are set to rise by 10% in 2013 but there is still a pay disparity between different business sectors on Wall Streets, says Johnson Associates (Photo: Reuters)
US banker bonuses are set to rise by 10% in 2013 but there is still a pay disparity between different business sectors on Wall Streets, says Johnson Associates (Photo: Reuters)

US hedge fund and banker bonuses are set to rise by 10% in 2013 but there is still a pay disparity between different business sectors on Wall Street, says a consulting firm.

According to a fresh forecast by Johnson Associates, overall individual US banker bonuses may rise by 5% to 10% in 2013, compared to last year.

The consulting firm says that while bonuses, on average, will rise, some areas of finance will recieve much more than others.

Underwriters are set to receive a bonus rise of 10% to 15% while prime brokerage and private equity workers are likely to see a 5% to 10% jump in extra pay.

Commercial and retail bankers will get bonuses in a range of flat to up 5% but fixed-income traders are likely to face bonus cuts.

Hedge Fund Salaries and Bonuses Grow

Johnson Associates say equities traders and hedge fund employees will likely see bonuses rise by 5% to 15%.

The analysis falls in line with the 2014 Glocap Hedge Fund Compensation report that said even junior professionals working for a hedge fund will see a third consecutive yearly rise in pay and bonuses.

According to the report, the average salary for an entry-level analyst at a mid-performing hedge fund was boosted by bonus rises of up to 10%.

"Hedge funds' bonus pools were fueled in 2013 by the combination of increased performance fees and additional management fees generated on an increase in investor capital allocations," said Anthony Keizner, head of Glocap's hedge fund practice in the report.

"These larger bonus pools will be passed through this year as higher compensation for key staff."