Elena Martinez
Last year, Wall Street bankers saw a dip in their bonus payouts, but their earnings still dwarfed the median household income in the US.
According to estimates released by New York State Comptroller Thomas DiNapoli on Tuesday morning, the average Wall Street bonus for 2023 stood at $176,500, marking a slight decrease from the $180,000 recorded in 2022. These figures were notably lower than the $240,000 seen in 2021.
The drop in the average bonus isn’t unexpected, considering the mixed earnings on Wall Street last year, coupled with subdued merger and acquisition activity. DiNapoli remarked, “Wall Street’s profits were up 1.8% in 2023, but firms have taken a more cautious approach to compensation and more employees have joined the securities industry, which accounts for the slight decline in the average bonus.”
However, it’s essential to keep things in perspective: The average Wall Street bonus, added on top of the nearly half-a-million-dollar average Wall Street salary, was approximately 2.5 times higher than the median US household income of $74,580, as per Census data for 2022.
Wall Street bonuses and the overall employment landscape in the securities industry play a crucial role in generating revenue for both the New York State and New York City economies. They accounted for 27% of the state’s tax collections and 7% of city tax revenue, according to DiNapoli’s office.
DiNapoli noted that a higher percentage of financial services employees (65%) worked in-office compared to 58% in other industries in the city, at least as of September 2023.
Moreover, securities industry employees were found to utilize the subway more frequently than workers in other sectors. Overall, DiNapoli estimates that Wall Street contributes to roughly 14% of economic activity in the city.
Despite the critical role played by Wall Street, it’s essential to recognize that the city and state’s economy extends far beyond it. DiNapoli emphasized, “The securities industry’s continued strength should not overshadow the broader economic picture in New York, where we need all sectors to enjoy full recovery from the pandemic.”
It’s worth noting that the comptroller’s figures only account for bonuses paid to securities industry employees working for firms based in New York City.
Beyond their contributions to government revenue, Wall Street workers significantly impact the local Gotham economy.
