Wall Street bonuses are set to increase by 9%, reaching an unprecedented $49.2 billion in 2025, as indicated by annual projections from New York State Comptroller Thomas DiNapoli. He cautioned Mayor Zoran Mamdani about the necessity of a strong financial sector for New York City’s prosperity.
DiNapoli noted that the average bonus last year was around $246,900, with robust performance in trading, underwriting, and asset management driving industry profits upward by more than 30% to $65.1 billion, a 6% rise from 2024.
“Regardless of ongoing domestic and international challenges, Wall Street thrived for a significant part of last year,” DiNapoli mentioned, subtly alluding to trade policies from the Trump administration and the ongoing turmoil in the Middle East.
Having been a Democratic figure since 2007, he highlighted that the profits from New York’s financiers are beneficial for taxpayers, as they contribute to essential public services.
“If Wall Street prospers, it’s advantageous for the state and city budgets that depend on substantial tax revenue from the sector,” he explained.
These remarks come in light of Mayor Mamdani’s potential moves to impose a wealth tax and increase real estate taxes to address a $12 billion financial shortfall in the city.
Governor Kathy Hochul, who had previously invited New York’s wealthy to consider relocating to Florida, recently faced some embarrassment when she encouraged them to return to New York to help boost the dwindling tax base.
Reports indicate that Texas and Florida are actively trying to attract Wall Street professionals with the allure of lower taxes and improved living conditions.
“However, job growth is decelerating and global conflicts pose significant risks to the financial sector’s short- and long-term outlook,” DiNapoli pointed out, reaffirming that New York City still stands as the financial hub of the nation.
According to his office, the city holds a share of just under 18% of the nation’s finance jobs, with approximately 198,200 individuals employed in the sector, a slight decrease from 201,500 the previous year, which had been a three-decade high.
While this figure has reduced from about a third in 1990, it still surpasses numbers in any other state.
“New York City remains America’s financial capital, though other regions are witnessing faster job growth,” his office stated.
In terms of earnings, the financial sector’s average annual salary, including bonuses, is projected to rise by 7.3% to $505,677 in 2024, the second highest on record and almost five times greater than the average pay in other private sectors within the city. Bonuses represent around 42% of overall earnings.
In 2024, Wall Street contributed 20.2% of the city’s total economic activity, accounting for 19.4% of the state’s tax revenue for the fiscal year 2024-25 and 8.4% of the city’s municipal tax revenue for fiscal year 2025.
The anticipated increase in bonuses for 2025 is expected to boost state income tax revenue by $199 million and city revenue by $91 million compared to the previous year.
Nevertheless, these figures might fall short of budget expectations. The governor’s budget proposal predicts a 25.9% increase in bonuses across the broader financial and insurance sectors for the 2025-26 state fiscal year.
The city’s financial plan for fiscal year 2026 suggests that bonuses for the securities industry might see a 15.1% increase.
Each year, DiNapoli’s office calculates the bonuses disbursed to Wall Street workers from December to March, excluding those given to employees from other states.
Projections for 2025 are grounded in income tax withholding data, covering cash bonuses for work done in 2025 as well as previously deferred bonuses that are due for payout. Notably, stock options and other deferred remuneration set for taxation aren’t included in these estimates.
