The total estimated 2024 bonus pool is 34% higher than last year’s $35.4 billion and is the largest amount on record dating back to 1987. Robust economic growth led to increased trading, account supervision, underwriting, and selling revenues, driving strong profits and helping generate the first significant bump in the average bonus estimate since 2021.
Securities employment in 2024 reached its highest annual level in at least three decades with 201,500 employees, up from 198,400 the year prior and exceeding the previous peak seen in 2000. The city remains the nation’s financial capital even as the city’s share of securities industry jobs has declined as companies have expanded nationally in recent years. In 2024, the city’s share of industry jobs nationally was 18%, down from about 33% in 1990, but still more than any other state. DiNapoli estimates 1 in 11 jobs in the city is either directly or indirectly associated with the securities industry.
Wall Street accounted for 19% of the state’s tax collections in State Fiscal Year (SFY) 2023-24 and 7% of city tax revenue in City Fiscal Year (FY) 2024. DiNapoli estimates the 2024 bonuses will generate $600 million more in state income tax revenue and $275 million more for the city when compared to the previous year.
The Governor’s proposed budget assumed bonuses in the state’s broader finance and insurance sector would increase by 16.4% in SFY 2024-25, while the city’s FY 2025 financial plan assumed an increase of 16.5% in the city’s securities industry bonuses. Based on DiNapoli’s estimate, tax revenue from the securities industry bonuses should meet or exceed expectations for the current fiscal year.
In 2023, Wall Street was responsible for 17.7% of all economic activity in the city (most recent data available). Financial services firms continue to have one of the highest return-to-office rates among all industry sectors in New York City. The Partnership for New York’s May 2024 survey found that office attendance rates for the financial services sector were at 60% compared to 56% for the private sector overall.
Financial services firms are also responsible for a greater share of new leasing activity in the city since the pandemic and have helped drive the development of new property. For instance, JP Morgan Chase is close to completing its new 60-story headquarters building in Midtown and purchased another nearby building (250 Park Ave) to add to its portfolio. Twenty-one other major financial firms are also active in the market, such as BlackRock, which is increasing its footprint in Hudson Yards to over a million square feet.
Methodology
DiNapoli’s office releases an annual estimate of bonuses paid during the traditional December through March bonus season to securities industry employees who work in New York City. Bonuses paid by firms to their employees located outside of New York City, whether in domestic or international locations, are not included. The Comptroller’s 2024 estimate is based on personal income tax withholding trends and includes cash bonuses paid for work performed in 2024 and bonuses deferred from prior years that have been cashed in. The estimate does not include stock options or other forms of deferred compensation for which taxes have not been withheld.
Charts
Bonus Pool Chart from 1995 to 2024
Annual Profits and Employment Chart
Related Work Report
The Securities Industry in New York City, October 2024
Dashboard
Securities Sector Industry Dashboard
Source: Office of the New York State Comptroller
