New York – The increase in profits on Wall Street helped increase the average bonus paid to New York City’s stock industry employees to a record $ 257,500 last year, the state intervention reported on Wednesday.
The average stock industry bonus was 20% higher than in 2020 and came out of a set of bonuses that grew to $ 45 billion, according to annual estimates by state controller Thomas DiNapoli. Bonuses for 2020 also set a record at that time, after rising by 25% over the previous year despite the recession caused by the COVID-19[feminine[feminine pandemic.
DiNapoli cited pre-tax profits for the first three quarters of 2021 for broker / dealer operations on the New York Stock Exchange, which rose 19.6% to $ 44.9 billion. The jump in profits for Wall Street companies was driven by low interest rates, a record market for initial public offerings and rising commissions.
The stock industry accounts for one-fifth of private sector wages in New York City, although it accounts for 5% of private sector employment. The industry also accounted for 18% of state tax revenue and 7% of municipal tax revenue during governments ’2021 fiscal years, according to DiNapoli.
What the Wall Streeters do
In terms of employment, Wall Street has declined slightly in recent decades, the auditor’s report shows. In 2021, 180,000 people worked in the stock industry in New York, 10% less than their peak in 2000. However, wages have continued to rise.
In 2020, the average salary of securities professionals, including bonuses, was $ 438,370, nearly five times the average annual salary of $ 92,315 for the rest of New York’s private sector. In 1981, the average compensation in the stock industry was about twice that of the rest of the private sector.
DiNapoli said recent events could reduce profitability and short-term bonus payments.
“Markets are turbulent, as the recovery of other sectors remains slow and uneven, and Russia is waging an inexcusable war on Ukraine’s freedom,” it said in a statement. “In New York, we will not return to our pre-COVID-19 economic strength until more New Yorkers and more sectors (retail, tourism, construction, arts and others) have similar success.”
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