Wall Street Bonuses Hit Record $47.5 Billion, Average Payout Soars to $244,700
Wall Street bonuses reached unprecedented heights in 2024, with the total bonus pool climbing to a record $47.5 billion, according to a report released by the New York State Comptroller. The average individual bonus in New York City’s securities industry surged to $244,700, marking a 31.5% increase from the previous year.
The bonus pool, distributed between December and March, saw a substantial 34% rise from 2023, surpassing the previous high of $42.7 billion set in 2021. This surge in compensation comes as Wall Street’s profits experienced a remarkable 90% increase.
The economic impact of these elevated bonuses is expected to be significant. The Comptroller’s report projects an additional $600 million in state income tax revenue and $275 million for New York City compared to 2023. These estimates are based on personal income tax withholding trends and cash bonuses.
Major financial institutions, including Goldman Sachs and JPMorgan Chase, reported strong performances for 2024. Goldman Sachs saw its revenue climb to $53.5 billion from $46.3 billion, while JPMorgan Chase’s net income rose to $58.5 billion from $49.6 billion.
However, the report cautions that this resurgent year for industry compensation may not continue. Economic uncertainty and potential federal policy changes could impact the securities industry in 2025. The dealmaking rebound has already been disrupted by policy shifts and tariff threats, with US mergers and acquisitions activity down 24% compared to the same period in 2024.
On the employment front, the financial services sector in New York City saw a slight increase in jobs. Securities industry employment rose by 1.6% to 201,500 in 2024, surpassing the previous peak seen in 2000.
As Wall Street celebrates its record-breaking year, industry observers remain cautious about the sustainability of these gains in the face of evolving economic conditions and regulatory landscapes.
