The average Wall Street bonus of $176,700 last year declined 26% from the record-setting bonus of $240,400 in 2021, New York state Comptroller Thomas P. DiNapoli announced Thursday.
"Wall Street's cash bonuses were expected to fall as several factors weighed on the securities' industry profitability in 2022," Mr. DiNapoli said in a news release. "A 26% decline brings the average bonus closer to what financial employees received prior to the pandemic," he said.
"While lower bonuses affect income tax revenues for the state and city, our economic recovery does not depend solely on Wall Street. Employment in leisure and hospitality, retail, restaurants and construction must continue to improve for the city and state to fully recover," he added.
Mr. DiNapoli issues an annual bonus estimate based on the traditional bonus season for securities industry employees in New York City that runs from December through March.
The estimate is based on personal income tax withholding trends, the news release said. It includes cash bonuses paid for work performed in 2022 and bonuses deferred from prior years that have been cashed in.
The estimate excludes stock options or other forms of deferred compensation for which taxes have not been withheld, the news release said.
Mr. DiNapoli also provided an update on Wall Street's financial and employment impact.
Pre-tax profits were $25.8 billion last year, down from the record $58.4 billion in 2021 and from the second-highest amount of $50.9 billion in 2020.
His report attributed the 2022 result to "deep declines in investment-banking fees, which were driven by the Federal Reserve's interest-rate hikes, inflation and Russia's invasion of Ukraine."
Pre-tax profits are for broker/dealer operations of New York Stock Exchange members. The result is not adjusted for inflation.
The report also noted that Wall Street employment reached a record of 190,800 last year, up from 180,300 in 2021. The previous record was 183,500 in 2019.