Wall Street Record All-Time High Bonuses

Synopsis – Considerably, the bonus pool of the year 2020 had also shown a significant rise of 25% growth over the year 2019, which was historically significant amidst the pandemic-induced recession. The report also mentions that the securities industry is consistent in terms of making up one-fifth of private-sector wages in NYC while comprising up to 5% of employment in the private sector.

The year 2021 has been very economical for Wall Street financiers as the data released by New York State Comptroller Thomas P. DiNapoli suggests. Reportedly, Wall Street has handed all-time high record bonuses. According to the report, Wall Street securities employees received $257,500 per worker in bonuses last year.

The amount is said to be at an all-time high. It grew by 20%than the previous year. The paid estimated bonuses are yet higher than the city’s recently released growth projection of 15.7%. Meanwhile, where the average bonus has grown by 20% and the entire bonus pool for New York City (NYC) securities industry workers grew by 21% to $45 billion in 2021 during the traditional December to March bonus season, which increased from $37.1 billion in 2020.

Considerably, the bonus pool of the year 2020 had also shown a significant rise of 25% growth over the year 2019, which was historically significant amidst the pandemic-induced recession. The report also mentions that the securities industry is consistent in terms of making up one-fifth of private-sector wages in NYC while comprising up to 5% of employment in the private sector.

DiNapoli estimates, “1 in 9 jobs in the city is either directly or indirectly associated with the securities industry”. Further, he estimated that the securities industry accounted for 18 % of state tax collection as a major source of revenue in the fiscal year of 2021.

The report by the New York State Comptroller has revealed that the securities industry has recorded more than double the average bonus since the financial crisis in the year 2008.

Even amidst the pandemic, the average bonus in the sector has grown by 28% in the year 2020, the report cites a rash of mergers and acquisitions in the year. The reason being, as market volatility encouraged trading activity, the revenue got a boost. Similarly, walking on the same line banks have also been trying to attract new talent and retain employees by boosting bonuses.

In terms of employment, the report states that the city’s securities industry was over 180,000 which is 5% less than 2007 and over 10% less than 2000 which was the peak. Meanwhile, where New York continues to be the center of the country’s securities industry, its total share of jobs has declined to 18% in 2021 which was over 33% in the year 1990.