New York State Comptroller Thomas DiNapoli released his annual report on securities industry compensation in new York City Wednesday and the results show just how the large the divide is between Wall Street and Main Street.
Based on DiNapoli’s findings, securities industry workers in New York City earned more in bonuses last year than the total earnings of all the full-time minimum wage workers in the United States combined. The graph above shows just how much bigger Wall Street’s bonus pile was than minimum wage earnings.
According to DiNapoli, the bonus pool for Wall Street workers was $US27 billion in 2013. DiNapoli said, as of December of last year, the securities industry employed 165,200 workers in New York City. That’s 12.6 per cent fewer workers than there were before the 2008 financial crisis.
On average, DiNapoli said Wall Streeters in New York City earned a bonus of $US164,530 last year. This was the highest average bonus since the crisis and the third highest on record.
Sarah Anderson, the director of the Institute for Policy Studies’ Global Economy Project, subsequently pointed out this $US27 billion bonus pool paid to securities industry workers in New York City in 2013 was larger than the total amount earned by all of the country’s 1,085,000 full-time minimum wage workers last year. In fact, Business Insider’s calculations show the Wall Street bonus pool was approximately 65 per cent larger than the total earnings of America’s full time minimum wage workers in 2013.
Assuming each of those full-time minimum wage earners worked a standard 40 hour week, the total amount they were paid was $US16.3618 billion. That’s over $US10.6 billion less than DiNapoli said was in the Wall Street bonus pool just for workers inside the five boroughs. DiNapoli said average data on Wall Street salaries in 2013 is not yet available. However, the average salary including bonuses paid to securities industry workers in New York City in 2012 was $US360,700. DiNapoli noted this was 5.2 times greater than the average salary paid to the rest of New York State’s private sector workers in 2012, which was $US69,200.
DiNapoli’s bonus estimates included cash bonuses for the current year as well as deferred compensation from prior years. He noted bonuses now include a larger share of deferred compensation as a result of compensation reforms enacted following the financial crisis.
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