Wall Street’s bonus pool is on track to break records this year, fuelled by significant profits from surging stocks and a resurgence in dealmaking after a prolonged slowdown. According to an annual report by New York State Comptroller Thomas DiNapoli, profits at the 130 firms belonging to the New York Stock Exchange reached $US30.4 billion in the first half of the year. If this pace continues, it will mark the highest level on record.
The report indicated that compensation expenses increased by almost 10 per cent in the first half of 2024 compared to the previous year. This suggests that bonuses could significantly increase, potentially surpassing last year’s record, where the average annual bonus reached $US244,700. DiNapoli highlighted that the banks’ gains would boost tax revenues, which are essential for critical investments in public services. Major financial institutions such as Morgan Stanley, JPMorgan Chase & Co, Bank of America, Citigroup, Goldman Sachs Group and Wells Fargo & Co reported $US15.4 billion in trading revenue for the third quarter, the highest in at least five years.
New York City benefits substantially from Wall Street’s success. Tax collections from the securities industry rose by 35.1 per cent to $US6.7 billion in the latest fiscal year. The average salary in the city’s securities industry rose 7.3 per cent to $US505,630, about five times the average salary for New York’s private sector workers. While wealth inequality remains a prominent issue in New York, DiNapoli emphasized the importance of Wall Street’s contributions to the city and state, noting that public services rely significantly on the profits generated by the financial sector.
