Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 7K views

    Wall Street Bonus Release

    Uploaded by

    Nick Reisman
    Cash bonuses paid to Wall Street employees in New York City are estimated to have declined 14% to $19.7 billion in 2011, reflecting a difficult year for the securities industry. Profits for broker/dealer firms were down over half from 2010 to an estimated $13.5 billion, as the industry struggled with the effects of the financial crisis and new regulations. The securities industry also shed over 4,300 jobs in New York City between April and December 2011 after some recovery from job losses during the crisis.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd

    Wall Street Bonus Release

    Uploaded by

    Nick Reisman
    7K views2 pages
    Cash bonuses paid to Wall Street employees in New York City are estimated to have declined 14% to $19.7 billion in 2011, reflecting a difficult year for the securities industry. Profits for broker/dealer firms were down over half from 2010 to an estimated $13.5 billion, as the industry struggled with the effects of the financial crisis and new regulations. The securities industry also shed over 4,300 jobs in New York City between April and December 2011 after some recovery from job losses during the crisis.

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Cash bonuses paid to Wall Street employees in New York City are estimated to have declined 14% to $19.7 billion in 2011, reflecting a difficult year for the securities industry. Profits for broker/dealer firms were down over half from 2010 to an estimated $13.5 billion, as the industry struggled with the effects of the financial crisis and new regulations. The securities industry also shed over 4,300 jobs in New York City between April and December 2011 after some recovery from job losses during the crisis.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    7K views2 pages

    Wall Street Bonus Release

    Uploaded by

    Nick Reisman
    Cash bonuses paid to Wall Street employees in New York City are estimated to have declined 14% to $19.7 billion in 2011, reflecting a difficult year for the securities industry. Profits for broker/dealer firms were down over half from 2010 to an estimated $13.5 billion, as the industry struggled with the effects of the financial crisis and new regulations. The securities industry also shed over 4,300 jobs in New York City between April and December 2011 after some recovery from job losses during the crisis.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    You are on page 1of 2

    NEWS

    CONTACT: Eric Sumberg (212) 681-4840

    From the Office of New York State Comptroller

    Thomas P. DiNapoli
    FOR RELEASE: Embargoed

    WALL STREET BONUSES DECLINED IN 2011


    Industry Profits Down by Half from Prior Year Cash bonuses paid to New York City securities industry employees are forecast to decline by 14 percent to $19.7 billion during this years bonus season, according to an estimate released today by State Comptroller Thomas P. DiNapoli. Cash bonuses were down in 2011, reflecting a difficult year on Wall Street, DiNapoli said. Profits were down sharply and securities firms in New York City resumed downsizing in the second half of the year. The securities industry, which is a critical component of the economies of New York City and New York State, faces continued challenges as it works through the fallout from the financial crisis and adjusts to regulatory reforms. The Comptroller also estimates that profits for the broker/dealer operations of New York Stock Exchange member firms, the traditional measure of profitability for the securities industry, did not exceed $13.5 billion in 2011, which would be less than half of the $27.6 billion earned in 2010. This would be the second year in a row that profits dropped by more than half. While the industry had a strong first half with profits of $12.6 billion, it lost $3 billion during the third quarter. Underlying profitability at the large firms was even weaker than reported because profits were boosted by accounting adjustments. The industry earned a record $61.4 billion in 2009 with the benefit of federal assistance after losing a record total of $53.9 billion over the course of 2007 and 2008. While a number of large firms announced reductions in cash bonuses for 2011 (with several firms reporting reductions in the range of 20 to 30 percent), personal income tax collections indicate a smaller decline in the overall cash bonus pool. This is likely due to the payment of bonuses that had been deferred from earlier years. The increased use of deferred compensation should create a pipeline of bonuses that will be paid in future years, which will reduce volatility in industry tax payments. DiNapolis office releases an annual estimate of cash bonuses paid to securities industry employees who work in New York City during the traditional bonus season. Bonuses paid by New York Citybased firms to their employees located outside of the City (whether in domestic or international locations) are not included. The Comptrollers estimate is based on personal income tax trends and reflects cash bonuses and deferred compensation for which taxes have been withheld. The estimate does not include stock options or other forms of deferred compensation that have not been realized.
    Albany Phone: (518) 474-4015 Fax: (518) 473-8940 NYC Phone: (212) 681-4840 Fax: (212) 681-4468 Internet: www.osc.state.ny.us E-Mail: press@osc.state.ny.us

    DiNapoli also reported that: The securities industry in New York City has resumed downsizing. Between April 2011 and December 2011, the industry shed 4,300 jobs. During the financial crisis, the industry had lost 28,000 jobs, of which only 9,600 jobs had been recovered before losses resumed in April 2011. The average cash bonus declined by 13 percent to $121,150 in 2011. The average bonus declined slightly less than the total cash bonus pool because the pool was shared among fewer workers than in 2010. The average salary (including cash bonuses) in the securities industry in New York City grew by 16 percent to $361,180 in 2010, which was 5.5 times higher than the average salary in the rest of the private sector ($66,110). Data is not yet available for 2011. Compensation consumed a greater share of net revenue in 2011. The member firms of the New York Stock Exchange devoted nearly 52 percent of their net revenue to compensation (e.g., salary and bonuses for their broker/dealer operations) during the first three quarters of 2011, compared with 47 percent in all of 2010 and 36 percent in 2009. Before the start of the financial crisis, business and personal income tax collections from Wall Street related activities accounted for up to 20 percent of New York State tax revenues, but that contribution declined to 14 percent last year. Wall Streets contribution to the Citys tax collections has declined from 13 percent of City tax revenues to less than 7 percent. In 2010, the securities industry in New York City accounted for 23.5 percent of all wages paid in the private sector despite accounting for only 5.3 percent of all private sector jobs. The decline in bonuses forecast by the Comptroller is consistent with the expectations in New York Citys budget but is not as great as the decline predicted by New York State for the broader finance industry, meaning revenues may be slightly higher than anticipated in the last quarter of the current state fiscal year. ### Follow us on twitter: @NYSComptroller

    You might also like