As we've written before (here, here) 2020 was actually a very good a year for Wall Street. And now we know just how much (on average) for the risk-takers in financial firms. The NYS Comptroller's office released bonus numbers for 2020 and it's pretty good: the average bonus paid to employees in NYC rose 10% to $184,000. A boom in underwriting activity, historically low interest rates and surges in trading were behind the windfall revenue for securities firms. The Comptroller estimates the bonus pool for NYC finance industry workers was $31.7 billion in 2020, up from $29.7 billion in 2019. The Comptroller noted that growth of the bonus pool following a recession was unique. Bonuses fell by 33% in 2001 after 9/11 and by 47% in 2008 after the GFC. (Click chart to enlarge)
The good news for everyone else, the "income tax revenue from NYC's securities industry will help shore up state and city budgets that are strained by steep declines in other industries."
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