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The financial services sector in New York City saw a major revenue increase last year. Employees that empower this industry received $138,210 in Wall Street bonuses for the year of 2016. This financial improvement has spectacular surge in bank profitsto thank for. This is the first time in three years when the profits escalated so quickly. By comparison, industry workers received just a 1% boost to their salaries.
Wall Street Bonuses Soared 21%
On Wednesday, the New York State Comptroller, Thomas P. DiNapoli, released a new financial report. One of the main findings of the document highlights a huge discrepancy between the worth of financial industries. While the bank’s employees and brokerages got to take home a 1% profit, the Wall Street bonuses soared 21%.
Another odd fact was that in 2016, the Wall Street profits suffered a plunge in numbers actually. Despite this profit decay, the employers were generous in the compensation area. In the Wall Street world, bonuses are declared between December and March. These consist not only of cash, but also of stock as well. This is why some employees might get their hands on their gratification in several years from now.
The source of generous bonuses might have something to do with stock prices for banks that increased since November. Morgan Stanley, Goldman Sachs, and JPMorgan Chase saw a boost of more than 30%. At the same time, the Bank of America left all the others behind thanks to a 50% increase.
Only 10% of Employees Benefited the Bonus
On the other hand, Michael Karp, the CEO of Options Group, a top recruiting company, stated that only up to 10% of employees benefited the Wall Street bonuses. It was only 2015 when trading business faced massive difficulties and had to lower the bonuses for employees by 15%.
“Since DiNapoli’s survey focuses on tax credits, much of the increase came from the appreciation of deferred stock bonuses vesting this year,” Karp explained.
The comptroller’s report didn’t divulge numbers. However, the document did specify the bonuses for 2015. The securities industry paid an average of $388,000. This makes the average bonus for the year of 2016 to hit a total of $500,000. The recently disclosed report shows only average bonuses. On the other hand, employees aren’t remunerated equally across the securities industry. Those in the front office such as bankers and traders earn significantly more than the others.
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