Bonuses for Wall Street bankers are projected to plunge as much as 45% this year as business dries up.

Payouts for investment bankers who underwrite deals will probably drop 40% to 45% this year, while incentive compensation for those advising on transactions is estimated to fall 20% to 25%, according to compensation consultancy firm Johnson Associates.

"Headcount will decrease as firms scale back after increasing headcount in 2021 and into 2022," Alan Johnson, a managing director at the consultancy, wrote in a report.

While investment bankers have come under pressure from turmoil in financial markets, their counterparts in trading have benefited from a surge in volatility and client activity.

Fixed income traders and salespeople will probably get pay bumps of 15% to 20%, while bonuses for stock traders could rise 5% to 10%, according to the report. (Reporting by Lananh Nguyen; Editing by Sandra Maler)