The average bonus paid to securities industry employees in New York City grew 15% to $164,530 in 2013, according to the Office of the New York State Comptroller.
Including both cash and deferred compensation, this is the largest average bonus paid out since the 2008 financial crisis and the third-highest on record. (The average bonus in '06 was $191,360; in '07, it was $177,830.)
“Wall Street navigated through some rough patches last year and had a profitable year in 2013. Securities industry employees took home significantly higher bonuses on average,” said New York State Comptroller Thomas P. DiNapoli, in a statement Wednesday. “Although profits were lower than the prior year, the industry still had a good year in 2013 despite costly legal settlements and higher interest rates. Wall Street continues to demonstrate resilience as it evolves in a changing regulatory environment.”
In 2013, broker-dealers reported combined profits of $16.7 billion, 30% less than in 2012 ($23.9 billion) but still strong by historical standards. Some factors affecting profits include requirements for larger reserves, limits on proprietary trading and other changes intended to reduce unnecessary risk and to enhance transparency.
“In response to compensation reforms, firms now pay a smaller share of bonuses in the current year and a larger share is deferred to future years,” the comptroller’s office explained.
Due to these trends, the number of industry jobs in New York has not returned to its pre-crisis level: Some 165,200 employees worked in the securities industry last year, nearly 13% fewer than before the financial crisis.
Other industry trends highlighted by the controller include:
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