Wall Street bonuses fell slightly last year to an average of $176,000 per worker, their lowest level in four years, as elevated interest rates and a lack of deals weighed on financial industry profits.
The 2 per cent drop came on a 1.8 per cent increase in industry profits to $26.3bn, according to estimates released in a report on Tuesday by the New York State comptroller. The drop in average bonus was much smaller than 2022’s 25 per cent plunge, as firms sought to hang on to top bankers and traders, a sign that many expect a fall in interest rates this year will lead to a rebound in financial activity.
As for hiring, the state comptroller found that as a whole the securities industry grew in 2023, with financial sector employment increasing to 198,500 workers, even as several larger banks either cut staff or curtailed hiring last year.