Wall Street salaries continue to soar

Average compensation for employees of Wall Street firms climbed more than 10 per cent last year off the back of new tax laws.

Trader Edward McCarthy, left, and specialist Anthony Matesic, right, work on the floor of the New York Stock Exchange, Friday, Sept. 14, 2018. Picture: AP

The average compensation for employees of Wall Street firms climbed more than 10 per cent last year, according to a report released on Monday.

The average salary and bonus for employees at broker-dealer firms in New York City increased to $US422,500 in 2017 and to $US389,000 for securities-industry employees on Long Island, according to New York State Comptroller Tom DiNapoli’s annual survey.

The average wage for all industries in New York State is $US61,460, according to the New York State Department of Labor.

Mr DiNapoli said the statewide average salary in the securities industry grew 12 per cent to $US403,100 in 2017.

The financial-services firms accounted for $US14 billion of state tax collections in the fiscal year ended March 31, Mr DiNapoli estimated, or 18 per cent of the total. In New York City, Mr DiNapoli attributed $US4.2 billion in tax collections to Wall Street. That is 7 per cent of the total, he said.

“The securities industry is a major source of revenue for New York City and New York State, and is an important part of the city’s economy,” Mr DiNapoli stated.

Pretax profits at New York Stock Exchange member firms totalled $US13.7 billion in the first half of the year, an increase of 11 per cent from the same period in 2017, Mr DiNapoli found. Securities firms reported $US24.5 billion in profits in 2017. Revenue from trading activities ticked up in 2016 and 2017, but has declined from 2009; revenue from wealth management and account supervision has tripled since 2009, the report said.

There were 197,300 jobs in the securities industry in New York State in 2017, 90 per cent of which were in New York City and 5 per cent of which are in Nassau, Suffolk and Westchester counties. Mr DiNapoli estimated the industry in New York was on pace to add 1700 jobs in 2018.

Kathryn Wylde, chief executive officer of the Partnership for New York City, a business group, said relaxed regulations, the new federal tax law and “competition for talent” boosted industry profits and bonuses.

“The most successful Wall Streeters have more options than ever; there are more small firms, private equity has grown as a sector that wants to attract bankers,” Ms. Wylde said.

Another factor, according to Mr DiNapoli’s report, was a 2008 federal law that required the repatriation of deferred compensation being held overseas before December 31, 2017. Bonuses accounted for an estimated 40 per cent of wages and are likely to increase in 2018 for the third consecutive year, Mr DiNapoli predicted.

Dow Jones Newswires