Wall Street companies have found a way to reduce inflation for their employees: simply raise annual bonuses to record levels.
The average Wall Street bonus in 2021 hit a record $257,500, up 20% from the previous year’s $213,700, according to estimates released Wednesday by New York State Controller Thomas DiNapoli. .
The payments are obviously good news for employees in the securities industry, who make up 5% of private sector employees in New York City.
But since their salaries represent a fifth of the city’s private sector salaries, the high bonuses are also good news for the tax coffers.
DiNapoli estimated that as a result of the record 2021 payments, the city will exceed its expected income from income taxes.
In all, Wall Street paid out about $45 billion during the December-March bonus season, an increase of $8 billion from last year’s total bonuses.
Of course, how much the average Wall Street employee earned in 2021 depended on the money their employer set aside for total compensation.
Goldman Sachs, for example, said it has set aside $17.7 billion for total compensation expenditures in 2021, which is a 33% increase over 2020. That averages out to nearly $404,000 for its 43,900 employees. company, including salaries and bonuses.
DiNapoli attributed the record bonuses to rising Wall Street profits, but cautioned that the uneven economic recovery from the pandemic and geopolitical turmoil could reduce bonuses for 2022.
“Markets are turbulent as the recovery in other sectors remains slow and uneven, and Russia is waging an unforgivable war on Ukraine’s freedom,” he said.
“In New York, we will not return to our pre-Covid economic strength until more New Yorkers and more sectors — retail, tourism, construction, the arts and others — have similar successes,” he added.
And even when those industries recover, many American workers still won’t come anywhere close to earning a six-figure bonus, let alone a six-figure income.
Nearly 52 million workers — or nearly a third of the US workforce — earn less than $15 an hour, according to an Oxfam America study. These workers, whose annual income is less than $31,200, are disproportionately women and people of color.
CNN’s Paul LaMonica and Tami Luhby contributed to this story
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
