Photo: Andrew Burton
Total cash bonuses for Wall Street firms are expected to decline 14 per cent to $19.7 billion for 2011, according to a report from New York State Comptroller Thomas DiNapoli. Average cash bonuses declined 13 per cent 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, according to the report.
“Profits were down sharply and securities firms in New York City resumed downsizing in the second half of the year,” DiNapoli said in a statement. “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 Street also continues to shed jobs. Between April 2011 and December 2011, the industry laid off 4,300 workers. 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.
Profits for broker/dealer firms listed on the New York Stock Exchange did not exceed $13.5 billion in 2011, which would be less than half of the $27.6 billion earned in 2010, the comptroller’s office said. This would be the second year in a row that profits dropped by more than half.
Here’s the bonus data since 2005:
Photo: NYS Comptroller