In 2024, Wall Street’s bonus pool reached a record high of $47.5 billion, reflecting an average bonus of $244,700 per banker, marking a 31% increase from the previous year. According to New York State Comptroller Thomas P. DiNapoli, this represents a 34% rise compared to the $35.4 billion bonus pool of the prior year and is the highest figure since records began in 1987.
DiNapoli’s report focuses exclusively on cash bonuses rather than deferred compensation like stock options. The increase in compensation is attributed to New York’s banks recovering from the impacts of the COVID-19 lockdowns. Profits for the city’s finance industry surged by 90% in 2024, driven by robust trading, underwriting, and dealmaking revenues.
“The record-high bonus pool reflects Wall Street’s very strong performance in 2024,” DiNapoli stated, adding that this financial strength is beneficial for New York’s economy. However, he cautioned that increasing economic uncertainty due to significant federal policy changes might affect the securities industry’s outlook in 2025.
The rise in profits also led to Wall Street job numbers reaching their highest annual level in nearly three decades, with 201,500 people employed in the New York finance industry, surpassing the previous peak seen in 2000. Wall Street contributes 19% of New York State’s tax collection and 7% of the city’s revenue, highlighting its importance to New York City. Financial services firms have also played a significant role in new leasing activity in the city since the pandemic, contributing to property development, such as JPMorgan Chase’s new 60-story headquarters in Midtown. — news from New York Post