NEW YORK — The average Wall Street bonus fell slightly last year to $176,500 as the industry added employees and took a “more cautious approach” to compensation, New York state’s comptroller reported Tuesday.
The average bonus for employees in New York City’s securities industry was down 2% from $180,000 in 2022. The slight dip came even as Wall Street profits were up 1.8% last year, according to the annual estimate from Thomas DiNapoli, the state’s comptroller.
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, which was up from 191,600 in 2022.
For 2023, the bonus pool was $33.8 billion, which is largely unchanged from the previous year.
The average Wall Street bonus hit a record high $240,400 in 2021, compared to a relative low of $111,400 in 2011.
Wall Street is a major source of state and city tax revenue, accounting for an estimated 27% of New York state’s tax collections and 7% 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.”
In a surprising turn of events, the average Wall Street bonus for 2023 has decreased to $176,500 from the previous year. This news comes as a shock to many in the financial industry, as bonuses on Wall Street have traditionally been a symbol of success and prosperity.
The decrease in bonuses can be attributed to a number of factors, including market volatility, regulatory changes, and shifting priorities within financial firms. With the rise of technology and automation in the industry, many firms are looking to cut costs and streamline operations, which may have led to smaller bonus pools for employees.
Additionally, the ongoing global pandemic has had a significant impact on the financial industry, with many firms facing challenges such as remote work, market uncertainty, and economic instability. These factors may have also contributed to the decrease in bonuses for 2023.
Despite the decrease in average bonuses, it’s important to note that Wall Street employees are still among the highest-paid professionals in the country. While $176,500 may seem like a significant sum to many, it is important to remember that these bonuses are often tied to performance and can vary greatly depending on individual success and contributions to the firm.
It will be interesting to see how this decrease in bonuses will impact the financial industry moving forward. Will employees be less motivated to perform at their best without the promise of a large bonus at the end of the year? Or will this shift in compensation lead to a more sustainable and equitable system for all employees?
Only time will tell how this change in average Wall Street bonuses will shape the future of the financial industry. In the meantime, employees and firms alike will need to adapt to this new reality and find ways to navigate the challenges and opportunities that lie ahead.
