Average Wall Street cash bonus highest since crash: NYS Comptroller
Cash bonus pool jumped 15 percent to $26.7 billion in 2013
NEW YORK (Reuters) - Wall Street's average cash bonus swelled last year to its highest since the financial crisis and the third largest on record, New York State's budget watchdog said on Wednesday.
The cash bonus pool jumped 15 percent to $26.7 billion in 2013, pushing the average cash bonus was $164,530, according to the New York state comptroller's annual estimate based on personal income tax trends.
The increased bonuses came as Wall Street posted a fifth consecutive year of profits after record losses during the 2008 financial crisis. Profits for broker-dealer operations of New York Stock Exchange member firms, however, fell 30 percent to $16.7 billion in 2013, the report said.
"Wall Street navigated through some rough patches last year and had a profitable year in 2013. Securities industry employees took home significantly higher bonuses on average," Comptroller Thomas DiNapoli said in a statement.
"Although profits were lower than the prior year, the industry still had a good year in 2013 despite costly legal settlements and higher interest rates," he added.
The Comptroller's estimate reflects cash bonuses and deferred pay from which taxes have been withheld. The estimate does not include stock options or other forms of deferred compensation. Bonuses paid to employees outside New York City are not included in the estimate.
The comptroller's office compiles estimates on Wall Street bonuses because of their importance to state and city tax revenues. The report estimates that New York City gained $3.8 billion in taxes from the securities industry in fiscal year 2013, 27 percent more than the previous year and the second highest level on record.
The securities industry accounted for 8.5 percent of the city's tax revenues during the 2013 fiscal year, below its peak of 11 percent prior to the recession.
New York state collected $10.3 billion in taxes from Wall Street during the financial year, accounting for about 16 percent of all state tax revenues. That compares to 20 percent before the recession.(Reporting by Edward Krudy; Editing by W Simon and Meredith Mazzilli)