Average Wall Street bonuses plummeted in 2022 to $176,700

theguardian.com:

Wall Street bankers might have to start counting their pennies: the average banking bonuses fell 26% last year, leaving the average bonus at “just” $176,700.

After significant boosts during the pandemic, profits started to fall for Wall Street firms in 2022 as inflation rose and fears of recessions started to hit, leaving companies with less leeway for bonuses, according to a report from the New York state comptroller office released on Thursday. Bonuses are now at pre-pandemic levels, reaching a low not seen since 2019.

The bonus pool in 2022 was $33.7bn, down 21% from 2021’s record of $42.7bn. In 2021, the average bonus was $240,400 – what had been a 20% increase compared with the year prior.

“A 26% decline brings the average bonus closer to what financial employees received prior to the pandemic,” comptroller Thomas DiNapoli said in a statement. DiNapoli notes that Wall Street accounts for 22% of the state’s tax revenue and 8% of tax collections for New York City.

“While lower bonuses affect income tax revenues for the state and city, our economic recovery does not depend solely on Wall Street. Employment in leisure and hospitality, retail, restaurants and construction must continue to improve for the city and state to fully recover,” he said.

In an analysis of the news, Inequality.org calculated that since 1985, the first year the comptroller reported bonus data, the average Wall Street bonus has increased 1,165%, from $13,970 to $176,700 in 2022 (not adjusted for inflation).

The bonuses came on top of base salaries, which averaged $516,560 for New York securities industry employees in 2021, according to the inequality research non-profit.

Wall Street remains vital to New York’s economy. DiNapoli notes that one in 11 jobs