The average bonus paid by Wall Street firms increased 20% last year to $257,500 U.S. as a flurry of initial public offerings (IPOs) and other deals increased profitability across the industry.
The typical bonus paid to employees in New York’s securities industry climbed to an all-time high in 2021, according to an analysis by the New York State Comptroller’s Office.
The industry’s bonus pool swelled to $45 billion U.S. last year, up 21% from 2020. The Comptroller’s Office estimate is based on trends in personal income-tax withholdings and includes cash bonuses for the current year as well as bonuses deferred from prior years that have now been cashed in.
The calculation does not consider stock options or other types of deferred compensation.
Wall Street continued to cut jobs last year, with total employment dropping to 180,000 jobs in 2021. New York’s share of the securities industry also slipped to 18%, down from 33% three decades ago, as banks continue to move positions to other parts of the country and permitted more employees to work from home.
In New York City, the securities industry provides about one-fifth of private-sector wages despite accounting for just 5% of total employment. Still, one in nine jobs in New York City is directly or indirectly tied to the financial industry.
