Year-end bonuses on Wall Street are expected to rise 7.4% this year as the U.S. stock market continues to rally and dealmaking returns.
According to the New York State Comptroller’s Office, bonuses across Wall Street are likely to increase this December for the first time in two years.
Bonuses had been subdued amid a bear market in equities that occurred during 2022, and as deals such a mergers and acquisitions (M&A) and initial public offerings (IPO) dried up coming out of the Covid-19 pandemic.
But now, the good times have returned to Wall Street as the stock market booms and dealmaking recovers. The benchmark S&P 500 stock index is up 21% year to date.
Lower interest rates and a strong U.S. economy also have traders, analysts and dealmakers on Wall Street feeling optimistic heading into 2025.
Bonuses comprise a big part of people’s compensation on Wall Street, making up more than half of some people’s annual renumeration.
Wall Street also continues to be a major economic driver in New York City, with nearly 10% of all jobs in the Big Apple tied to the securities industry.
This year, Wall Street is expected to contribute $5.1 billion U.S. in tax revenue to New York City, according to the Comptroller's Office.
Wall Street’s largest banks begin reporting their third-quarter earnings on Oct. 11.
