Wall Street bonuses set to soar?

Reports say investment bankers stand to see the largest gains, while bond traders may see declines.

November 8, 2005: 7:33 AM EST


NEW YORK (CNN/Money) - Wall Street bonuses are set to rise an average of 20 percent this year on strong performances for the industry's top deal makers and traders, according to news reports Tuesday.

The Wall Street Journal said investment bankers will be among the biggest winners this year, with bonus compensation rising an average of 20 to 25 percent.

According to The New York Times, prime brokers, bankers who work with hedge funds, and proprietary traders, who invest their firm's funds, will also see substantial percentage increases from last year.

The Journal report said that bond traders -- especially those focusing on convertible and junk bonds -- may see their bonuses shrink this year.

Year-end bonuses make up most of financial traders' incomes.

Wall Street professionals typically make a base salary of $100,000 to $250,000, with the remainder coming in the form of the bonus, according to the Journal.

A senior investment banker on Wall Street could receive an average of $2.2 million to $3.3 million this year. A global head at an investment banking firm could average $7 million to $10 million, the report said.

Firms divvy up a pool of bonus money in order to insure that top talent stays with their company.