DiNapoli: Wall Street Bonuses to Rise 8 Percent

By JERMECIA EDWARDS

Wall Street bonuses were expected to rise by eight percent to $20 billion  this year, but there were fewer people working in the local financial industry , said State Comptroller Thomas DiNapoli in a press conference on Tuesday.

DiNapoli also reported that profitability for the securities industry totaled $23.9 billion in 2012, three times the $7.7 billion earned in 2011 and among the most profitable years on record.

“Profits and bonuses rebounded in 2012, but the industry is still restructuring from the 2008 financial crisis,” he added. “Despite its smaller size, the securities industry is still a very important part of the New York City and New York State economies.”

The estimate was based on personal income and tax trends and reflected bonuses and deferred compensation for which taxes have been withheld.

DiNapoli cited figures from the  City Department of Labor showing employment in the industry of totaling nearly 170,000 jobs in December of 2012, 1,000 fewer jobs than  2011.

His office estimated that the industry lost 28,300 jobs during the financial meltdown and has added only 8,500 so far during the recovery, a net loss of 19,800 jobs.

“Although we see down-sizing and fewer jobs,” he said, “ they are good jobs if you have them with significant salaries.  These security industry jobs continue to be significant drivers for the tax revenue of the state.”

The average salary in the securities industry increased slightly to $362,900 in 2011; this was the higher average than before the financial crisis and the highest average among New York City’s major industries.

“Wall street is very important to New York’s economy.,” the  comptroller concluded. “There is a lot of mixed feelings after the Financial crisis, but the reality for New York as a whole is when Wall street is doing well, we all benefit from it ,” said DiNapoli.

 

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