Average Wall Street Bonuses Dipped 26% to $176,700 Last Year

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FILE — People pass the front of the New York Stock Exchange, March 22, 2023. Average Wall Street bonuses dropped sharply last year amid lagging profits and recession fears, New York state's comptroller reported Thursday.(AP Photo/Peter Morgan, File)

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 City’s securities industry dropped 26% from 2021, when the average was a record $240,400, according to New York state Comptroller Thomas DiNapoli’s annual estimate. DiNapoli noted that bonuses last year returned to pre-pandemic levels.

“Wall Street’s cash bonuses were expected to fall as several factors weighed on the securities’ industry profitability in 2022,” DiNapoli said in a prepared release.

The comptroller said Wall Street’s pretax profits fell 56% in 2022 due to a sharp decline in investment-banking fees driven by inflation, interest-rate hikes and Russia’s invasion of Ukraine.

The bonus pool for 2022 was $33.7 billion, down 21% from the previous year’s 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 state’s 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,” DiNapoli said.

(AP)