The Office of the New York State Comptroller released a statement on Wednesday highlighting that the average bonus paid in New York’s financial industry increased by 2% to $172,860 in 2014. Also of note, although the financial industry was 4.5% less profitable in 2014, 2,300 jobs were created in the industry in New York City, the first year the industry has boosted the job count since 2011.
The Office of the State Comptroller has tracked financial industry performance and the bonuses paid to industry employees in New York City. Note that bonuses paid by firms to their employees located outside of New York City are not included in these figures. The estimate is based on personal income tax trends, which do not distinguish between cash bonuses for the current year and compensation deferred from prior years. Note the estimate doesn’t include stock options or other deferred compensation on which taxes have not been withheld.
Statement from New York State Comptroller DiNapoli
“The cost of legal settlements related to the 2008 financial crisis continues to be a drag on Wall Street profits, but the securities industry remains profitable and well-compensated even as it adjusts to regulatory changes,” Commissioner Thomas P. DiNapoli commented. “The resumption of job growth in the securities industry bodes well for the New York’s economy, but it remains to be seen whether this trend will be sustained.”
More details on 2014 Wall Street Bonuses
Of note, the bonus pool for securities industry employees in NYC increased by 3% last year to reach $28.5 billion for 2014. The estimate includes cash bonuses for the current year and bonuses deferred from prior years that were cashed in. The budgets for both New York State and New York City assume a modest increase in bonuses, matching the comptroller’s forecast.
The average bonus was up by 2% to $172,860 in 2014. That is the highest Wall Street bonuses have been since the financial crisis. The growth in bonuses was much stronger in 2012 and 2013 when bonuses increased by an aggregate 52%. The average bonus increase in 2014 is less than than the increase in the bonus pool (3%) because it was shared among more employees than last year.