NEW YORK (AP) – The average Wall Street bonus fell slightly last year to USD176,500 as the industry added employees and took a “more cautious approach” to compensation, New York state’s comptroller reported yesterday.
The average bonus for employees in New York City’s securities industry was down two per cent from USD180,000 in 2022. The slight dip came even as Wall Street profits were up 1.8 per cent last year, according to the annual estimate from the state’s comptroller Thomas DiNapoli.
DiNapoli’s office said the slight decline could be attributed to the compensation approach as more employees joined the securities industry.
Last year, the industry employed 198,500 people in New York City, up from 191,600 in 2022.
For 2023, the bonus pool was USD33.8 billion, which is largely unchanged from last year.
The average Wall Street bonus hit a record high USD240,400 in 2021, compared to a relative low of USD111,400 in 2011.
Wall Street is a major source of state and city tax revenue, accounting for an estimated 27 per cent of New York state’s tax collections and seven per cent of collections for the city, according to the comptroller.
“While these bonuses affect income tax revenues for the state and city, both budgeted for larger declines so the impact on projected revenues should be limited,” DiNapoli said in a prepared statement. “The securities industry’s continued strength should not overshadow the broader economic picture in New York, where we need all sectors to enjoy full recovery from the pandemic.”
