Bankers enjoy windfall as dealmaking rebounds
Wall Street banker bonuses surged 31.5% in 2024 to an average of $244,700, according to New York State Comptroller Thomas DiNapoli. The increase reflects a strong rebound in dealmaking, propelling the bonus pool to a record $47.5 billion — the highest since records began in 1987.
“This financial market strength is good news for New York’s economy and our fiscal position, which relies on the tax revenue it generates,” DiNapoli said in a statement. The securities industry remains a critical pillar of the city’s economy, directly or indirectly supporting one in every 11 jobs.
Warning signs amid federal policy shifts
Despite the record-setting year, DiNapoli warned of increasing uncertainty for 2025, pointing to federal policy changes under President Donald Trump, including new tariffs and leadership changes at regulatory agencies. “It’s way too soon to tell,” he said during a press briefing, when asked if bonuses or job figures might decline next year.
Economic volatility, the threat of recession, and possible federal cutbacks could all weigh on Wall Street’s profitability. JP Morgan’s chief economist has put the odds of a U.S. recession this year at 40%, noting potential long-term harm to the country’s investment reputation if institutional trust is undermined.
Record employment and tax windfall
Employment in New York City’s securities industry reached a three-decade high in 2024, climbing to 201,500 from 198,400 the year before. The rise in bonuses will inject an estimated $600 million in additional state tax revenue and $275 million more for the city, DiNapoli’s office reported.
Last year’s bonus hike marks the most significant increase since the early COVID-19 recovery period. Investment banking fees rose sharply, driven by a surge in corporate debt issuance and renewed M&A activity.
