Profits on Wall Street last year climbed 1.8%—but bonuses didn't quite align. Instead, the latter "dipped slightly" from the previous year, per a statement from New York State Comptroller Thomas DiNapoli, who says bonuses fell 2% in 2023, from an average of $180,000 the previous year to $176,500, report Reuters and the AP. The bonus pool in total stood at around $33.8 billion for 2023, which hovered around what 2022's pool was. In 2021, that same kitty had spiked to $42.7 billion. That same year, the average annual bonus came in at $240,400.
DiNapoli noted that the small dip may be attributed to both market volatility and more people entering the securities workforce. Per MarketWatch, 198,500 were employed in that sector in 2023, up from 191,600 the year before and 180,300 in 2021. Bonuses aside, those workers heading into Manhattan each day give a much-needed boost to New York City's bottom line. "As more securities employees are back in the office, there is increased spending in the city," DiNapoli says.
Wall Street provides an ample portion of local tax revenue, generating nearly 30% of the state's tax collections, and 7% of the city's, per the AP. "While these bonuses affect income tax revenues for the state and city, both budgeted for larger declines, so the impact on projected revenues should be limited," DiNapoli says in his statement. "The securities industry's continued strength should not overshadow the broader economic picture in New York, where we need all sectors to enjoy full recovery from the pandemic." (More Wall Street stories.)
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