Wall Street bonuses fell 9% in 2015 to the lowest level in three years, and recent market volatility and cutbacks suggest that 2016 is shaping up to be a difficult year, according to the New York State comptroller.
The average New York City securities worker earned a bonus of $146,200 last year, down from $160,280 in 2014, while the bonus pool for employees who work in New York City shrank 6 percent, to $25 billion. according to new data released Monday by New York state Comptroller Thomas DiNapoli.
By contrast, the median household income in the United States was $53,657 in 2014, unchanged from 2013, according to the U.S. Census Bureau.
But a changes in compensate come as Wall Street grows increasingly disturbed that a tellurian mercantile downturn will erode a industry's bottom line for some time. "We were all too confident for a final 4 or 5 years that a tellurian economy would get better," Johnson said."
The decline comes as large banks and brokerages have struggled with sluggish demand for fixed-income products amid growing uncertainty over the direction of interest rates. Large investors have also shied away from trading in commodities amid a plunge in oil prices.
It could also lead to more layoffs. Morgan Stanley, for example, already slashed 1,200 jobs last year amid losses in fixed-income and commodities trading. And last week Bank of America reported that it has given notice to 205 people from a service operations unit in Mohawk Valley, N.Y.
"Both a state and city budgets count heavily on a bonds attention and reduce increase could meant fewer attention jobs and reduction taxation revenue," DiNapoli pronounced in a statement. State officials had foresee a altogether reward pool for a stream mercantile year to grow modestly by 0.7 percent, though now design it to decrease about 2.5 percent.
While the banks reported their shrinking bonuses earlier this year, DiNapoli put a specific figure on just how far they have fallen based on New York City personal income tax trends. In 2006, leading up to the mortgage meltdown, Wall Street bonuses hit an all-time high of $191,360, the government collected data show.
New York's disappearing Wall Street reward compensate shows transformation in a instruction of sanity, but there are still one too many zeros," pronounced Bart Naylor, a financial process disciple for Public Citizen
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