Wall Street bonuses, profits fell in 2015

ALBANY, N.Y., March 7 (UPI) -- The average bonus paid on Wall Street fell 9 percent in 2015, the state comptroller's office reported Monday.

The securities industry's bonus pool of $25 billion, typically disbursed between December and March, declined 6 percent from 2014, and the average payout in 2015 was $146,000, an estimate by New York State Comptroller Thomas DiNapoli said.

"Wall Street bonuses and profits fell in 2015, reflecting a challenging year in the financial markets. While the cost of legal settlements appears to be easing, ongoing weaknesses in the global economy and market volatility may dampen profits in 2016. Both the state and city budgets depend heavily on the securities industry and lower profits could mean fewer industry jobs and less tax revenue," DiNapoli's statement said.

The securities industry is a significant economic force, accounting for 22 percent of New York City's private sector wages, and is a crucial element in city and state tax payments. An estimated one in nine private-sector jobs in the city are directly or indirectly associated with the securities industry.

DiNapoli noted that industry-wide profits declined 10.5 percent in 2015, and unlike in previous economic recoveries, accounted for few jobs added. The number of new jobs in New York City's securities industry increased only 1 percent; prior recoveries saw increases of 10 percent.

Pre-tax profits for broker/dealer operations for companies that are New York stock exchange members, the traditional yardstick for measuring Wall Street profitability, fell to $14.3 billion in 2015, down $1.7 billion, a 6.25 percent decline. The average salary in the city's securities industry was $404,000 in 2014, the last year data was available.