Wall Street Bonuses Jump 32% As Total Surges to Record, NY Comptroller Says

Bonuses for Wall Street bankers increased by 31.5 per cent to an average of $244,700 last year as deal-making surged, but the prosperous period may diminish as economic uncertainty escalates, stated New York State Comptroller Thomas DiNapoli on Wednesday.  This quarter has seen a slowdown in deals as businesses adjust to new policies from President Donald Trump's administration, such as tariffs and staff shifts within regulatory agencies, per Reuters. "This strength in the financial market is positive for New York's economy and our fiscal situation, which depends on the revenue from taxes it produces," stated DiNapoli, who added, "Nonetheless, rising uncertainty in the economy due to major federal policy shifts could lessen the forecast."

Wall Street bonuses hit record

The modifications follow a prosperous year where the bonus pool for workers in New York City's securities sector skyrocketed to a historic $47.5 billion for 2024, the largest since records began in 1987, the estimates indicated. According to the comptroller's estimate, in the world's leading financial hub, one of every 11 jobs in the city is related to the securities industry, either directly or indirectly. The largest banks on Wall Street announced an increase in investment banking fees last year, driven by a higher number of deals and corporate debt issuance. Following a 90% profit increase in 2024, the newest bonus information indicated the first significant rise since banks enjoyed a windfall due to the COVID-19 pandemic.

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In 2024, employment in the securities sector reached its peak in at least thirty years, with 201,500 workers, an increase from 198,400 the previous year. According to DiNapoli's estimates, the bonuses for 2024 are expected to produce an additional $600 million in state income tax revenue and $275 million more for the city in comparison to 2023.