Wall Street bonuses expected to rise more than 7% in 2024, NY comptroller says By Reuters

(Reuters) – Bonuses for Wall Street traders could rise 7.4 percent in 2024 as a rebound in trading will increase fees paid by investment banks, according to a report released on Wednesday by the state comptroller of New York York, Thomas DiNapoli.

The anticipated increase would mark the first increase in two years as corporations begin to emerge from a subdued trading environment.

Economic resilience, strong equity growth and the start of a potential rate-cutting cycle have allowed companies to pursue takeovers and sales of stocks and bonds.

Bonuses make up a significant portion of compensation on Wall Street. The industry’s fortunes also influence the economy of New York City and the state.

One in 11 jobs in New York was related to the securities industry as of 2022. The industry is also among the largest tenants of office space, contributing to property taxes.

In fiscal year 2024, the industry contributed $5.1 billion in tax revenue to the city, the comptroller’s report said.

However, annual performance reviews and restructuring may result in 3,400 fewer jobs in 2024 than a year ago, based on preliminary data cited by the report.

Investment banks have used such analytics to streamline their operations, weeding out underperformers and cutting redundancies from their ranks.

The comptroller’s report is significant because it sheds light on key trends shaping the financial center of the United States.

Major Wall Street firms are set to begin earnings season on Friday, which could provide more insight into these trends.