The common bonus paid to securities business workers in New York climbed 20% to a record $257,500 for last yr, in accordance to state comptroller Thomas DiNapoli.
The projection, launched Wednesday within the annual report from New York’s high fiscal officer, contains money bonuses for 2021 work in addition to deferred awards paid out just lately, in accordance to DiNapoli.
The upper compensation figures aren’t surprising: Wall Street companies together with Goldman Sachs and JPMorgan Chase posted eye-popping income will increase in January, fueled by booming mergers, public listings and powerful buying and selling exercise. In November, pay consultants mentioned they anticipated banks to put up the most important enhance in bonuses since 2009.
However DiNapoli’s report highlights the outsized function Wall Street workers have in New York’s monetary well being. Securities business jobs make up simply 5% of personal sector roles, however accounted for 18%, or $14.9 billion, of state tax collections within the 2021 fiscal yr, he mentioned.
That is as a result of Wall Street employees make nearly 5 occasions the $92,315 common wage within the non-public sector excluding finance, in accordance to the report. Securities employees noticed general compensation climb 7.7% to $438,370 for 2020, the newest knowledge the comptroller had.
There have been 180,000 employees in New York’s securities business in 2021, roughly unchanged from the earlier yr however 10% under its peak twenty years in the past. New York stays the nation’s monetary capital, though its share of finance jobs has fallen as companies create new workplaces in Florida, Texas and different low-tax states.
The truth that Wall Street pay got here in larger than New York had projected “should help the city exceed its expected revenue from income taxes,” in accordance to the report. Nonetheless, town’s monetary planning assumes that markets exercise cools off this yr, and that bonuses for the business will drop by 17%.
“Wall Street’s soaring profits continued to beat expectations in 2021 and drove record bonuses,” DiNapoli mentioned. “In New York, we won’t get back to our pre-Covid economic strength until more New Yorkers and more sectors — retail, tourism, construction, the arts and others — enjoy similar success.”