Wall Street workers are making do with less, as the average bonus in New York’s security industry fell 9 percent in 2015, according to a new report from New York Comptroller Thomas DiNapoli.
Of course, “less” is a relative term on Wall Street. Bonuses, which fell to their lowest level in three years, averaged $146,000 last year. That’s nearly triple the total income of the average American household.
“Wall Street bonuses and profits fell in 2015, reflecting a challenging year in the financial markets,” DiNapoli said in a statement. “While the cost of legal settlements appears to be easing, ongoing weakness in the global economy and market volatility may dampen profits in 2016.” Profits in the securities industry fell 10.5 percent in 2015.
Despite falling profits, the industry has been expanding, adding 4,500 new workers last year. Last year was the second consecutive year of job growth for the industry, but nevertheless it remains 8 percent smaller than before the financial crisis. Wall Street has accounted for less than 1 percent of the jobs added in New York City during the same period.
The average salary, including bonuses for securities industry workers in New York City, was more than $400,000 in 2014, the most recent year that data was available.
A separate report released last fall by New York-based compensation consulting firm Johnson Associates predicted that fixed-income traders would take the biggest bonus hit, with year-end income falling up to 20 percent. That report projected that bonuses would fall an average of 15 percent for hedge fund workers and investment banking underwriters.
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