Many Wall Street bonuses to climb - consultant

* Fixed-income, equities bankers may see bonuses rise

* Asset management, hedge fund bankers may see declines

By Jonathan Stempel

NEW YORK, May 28 (Reuters) - Many Wall Street investment banking employees should see bonuses rebound in 2009 as earnings improve, a top pay consultant said, even as the government uses billions of dollars of taxpayer money to prop up the still-troubled industry.

The consultant, Johnson Associates Inc, said bonuses may rise 20 percent to 30 percent in equities and fixed-income businesses, as results improve in such areas as commodities, currencies, derivatives and interest-rate products.

Bonuses may also rise 20 percent to 25 percent for general staff, while executives not among the five highest-paid officials at their banks may also enjoy "significant" increases, according to the report, released on Thursday.

Other employees may fare less well, as unsettled equity markets and reduced merger activity cut into underwriting and advising fees, while market depreciation and client asset outflows cut into revenue in fee-dependent businesses.

Bankers involved in underwriting and merger advising may see bonuses fall 15 percent to 20 percent, the report said. Bonuses may drop 25 percent to 35 percent in asset management, 25 percent to 30 percent in "prime brokerage," 25 percent in wealth management, and 20 percent to 30 percent in hedge funds and private equity. Workers in commercial and retail banking units may see bonuses rise or fall by 5 percent or less.

Wall Street pay practices remain under close scrutiny after risk-taking contributed to soaring losses and a freezing of credit markets last September, when Lehman Brothers Holdings Inc (LEHMQ.PK: Quote, Profile, Research) went bankrupt and insurer American International Group Inc (AIG.N: Quote, Profile, Research) got its first federal bailout.