Bonuses for Wall Street employees dropped 17 percent in 2018 despite an 11 percent increase in profits for the securities industry, according to data released Tuesday by the New York State comptroller’s office.
Wall Street profits rose 6 percent to $163 billion despite a bloody end of 2018 that wiped out most yearly stock gains, according to the New York comptroller’s office.
But the average bonus paid to a New York-based securities industry employees dropped to $153,700 in 2018 from $184,400 in 2017, when Wall Street bonuses rose 18 percent. {mosads}
New York State Comptroller Thomas DiNapoli said an increase in the number of Wall Street employees receiving bonuses drove down the average size of the yearly reward.
The 2018 bonus pool for traders and investment managers also fell 14 percent to $27.5 billion from a record $32.1 billion 2017.
“Despite a sharp decline in the financial markets in the fourth quarter of 2018, the securities industry still had a good year with increased profits and employment,” DiNapoli said.
Wall Street bonuses and profits hit record highs in 2017 as stocks soared on the promise of tax cuts, deregulation and other corporate friendly policies touted by President Trump and Republican lawmakers.
Stocks continued to rally into the beginning of 2018, but fell sharply in the fourth quarter as the mounting costs of tariffs imposed by Trump’s trade battles, Federal Reserve rate hikes and slowing global growth spooked investors.
Trading revenue increased 22 percent during the first three quarters of 2018, according to DiNapoli, but sank 6 percent in the fourth quarter as the Dow Jones Industrial Average suffered the worst December in its history.
Even so, the average Wall Street bonus was double the average annual salary of New York City employee outside of the securities industry.
DiNapoli said “trade tensions, a slowing global economy and greater economic uncertainty” pose threats to Wall Street profits in 2019.