NEW YORK ā Average Wall Street bonuses dropped sharply last year to $176,700 amid lagging profits and recession fears, New York state's comptroller reported Thursday.
The bonuses for employees in New York Cityās securities industry dropped 26% from 2021, when the average was a record $240,400, according to New York state Comptroller Thomas DiNapoliās annual estimate. DiNapoli noted that bonuses last year returned to pre-pandemic levels.
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āWall Streetās cash bonuses were expected to fall as several factors weighed on the securitiesā industry profitability in 2022,ā DiNapoli said in a prepared release.
The comptroller said Wall Streetās pretax profits fell 56% in 2022 due to a sharp decline in investment-banking fees driven by inflation, interest-rate hikes and Russiaās invasion of Ukraine.
The bonus pool for 2022 was $33.7 billion, down 21% from the previous yearās record of $42.7 billion, according to the comptroller.
The securities industry plays a major role in state and city tax revenue, accounting for an estimated 22% of the stateās tax collections and 8% of collections for the city.
"Employment in leisure and hospitality, retail, restaurants and construction must continue to improve for the city and state to fully recover,ā DiNapoli said.