Cash bonuses paid on Wall Street declined 2% in 2023 to an average of $176,500 U.S., according to data from the New York State Comptroller’s Office.
The decline was due to investment banks and other financial firms taking a cautious approach to compensation amid fears of an economic recession.
The lower bonuses were also due to Wall Street’s profits rising a tepid 1.8% last year.
In all, the U.S. financial industry's bonus pool totaled $33.8 billion U.S. in 2023. That was down significantly from 2021, when Wall Street bonuses hit a record $42.7 billion U.S. as dealmaking surged amid a stampeding bull market.
Wall Street firms in New York City employed just under 200,000 people in 2023, up from 191,600 in 2022, according to the Comptroller’s report.
About one in 11 jobs in New York City is either directly or indirectly tied to the financial services and investment banking industries.
