One in every 11 jobs in the city is either directly or indirectly associated with the securities industry
[NEW YORK] Wall Street banker bonuses rose 31.5 per cent to an average US$244,700 last year as dealmaking rebounded, but the boom times may wane as economic uncertainty rises, New York State Comptroller Thomas DiNapoli said on Wednesday (Mar 26).
Deals have slowed this quarter as companies navigate changing policies from President Donald Trump’s administration, including tariffs and personnel changes atop regulatory agencies.
“This financial market strength is good news for New York’s economy and our fiscal position, which relies on the tax revenue it generates,” DiNapoli said in a statement. “However, increasing uncertainty in the economy amid significant federal policy changes may dampen the outlook.”
The changes come after a bumper year in which the bonus pool for employees in New York City’s securities industry surged to a record US$47.5 billion for 2024, the highest in records dating back to 1987, the estimates showed.
As the world’s top financial centre, one in every 11 jobs in the city is either directly or indirectly associated with the securities industry, the comptroller estimated.
Wall Street’s biggest banks reported rising investment banking fees last year, fuelled by more deals and corporate debt issuance. After profits rose 90 per cent in 2024, the latest bonus data reflected the first major increase since banks reaped a windfall in the wake of the Covid-19 pandemic.
Employment in the securities industry in 2024 reached its highest level in at least three decades, to 201,500 employees, up from 198,400 a year earlier.
The 2024 bonuses will generate US$600 million more in state income tax revenue and US$275 million more for the city compared with 2023, according to estimates from DiNapoli. REUTERS
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