Wall Street’s bonus pool is on track to break records this year, fuelled by robust profits from soaring stock markets and a resurgence in dealmaking activity. According to an annual report released by New York State Comptroller Thomas DiNapoli, profits for the 130 firms belonging to the New York Stock Exchange reached $US30.4 billion in the first half of the year. If this pace continues, profits will reach their highest level on record.
Compensation expenses increased by nearly 10 per cent in the first half of 2025 compared to the previous year. This suggests that bonuses could significantly increase after already reaching a record high last year, when the average annual bonus was $US244,700. DiNapoli welcomed the banks’ gains, noting that they would boost tax revenues needed for critical public services investments. He acknowledged ongoing economic uncertainties related to interest rates, inflation, and the broader economy but highlighted Wall Street’s potential for another strong year.
Wall Street trading desks capitalised on tariff-driven market volatility and a stock rally propelled by technology stocks linked to artificial intelligence. For the third quarter, major firms including Morgan Stanley, JPMorgan Chase & Co, Bank of America, Citigroup, Goldman Sachs Group and Wells Fargo & Co reported $US15.4 billion in trading revenue – the highest for that period in at least five years. DiNapoli’s report also indicated that New York City tax collections from the securities industry rose 35.1 per cent to $US6.7 billion in the latest fiscal year.
Last year, the average salary in the city’s securities industry rose 7.3 per cent to $US505,630, approximately five times the average salary for New York’s private-sector workers. The securities industry provides financial services and investment banking, facilitating capital flow and investment opportunities. These firms also engage in trading and asset management, contributing to market liquidity and economic growth.
