NEW YORK, May 7 (Reuters) - Bonuses are poised to

recover on Wall Street this year, fueled by strong equity market

gains and recovery in investment banking, according to financial

services compensation firm Johnson Associates.

Investment bankers helping companies issue debt are expected

to have the highest raises in bonuses this year, from 15% to

25%, as companies sell record volumes of debt.

As initial public offerings come back, bonuses for equity

underwriters are expected to rise 10% to 20% this year.

"We are seeing almost all segments on Wall Street raising

compensation", said the firm's founder Alan Johnson. "This

should be a good year, although there are risks stemming from

elections in the U.S. and global conflicts".

Although improving, incentives in investment banking are

still far from their peak in 2021. The only segment where pay is

above the 2021 level is private equity, but the workforce at

these companies is considerably smaller than in banks, Johnson

said.

Higher trading volumes are expected to increase bonuses for

bond traders between 10% and 20%, and 5% to 15% higher for

equity traders. Executives working at wealth management will

probably have 5% to 10% higher compensation, whereas asset

management and hedge fund employees are expected to receive 5%

higher bonuses.

In asset management, although clients have been migrating

from higher fee products to passive investment products with

lower fees, the rise in stocks in 2024 has increased the volume

of assets and profitability in the business.