Wall Street bonuses hit a record $47.5B

Wall Street bonuses jumped 31.5% last year, reaching an average of $244,700, according to New York’s Comptroller Thomas DiNapoli. The total bonus pool hit a record $47.5 billion, a 34% hike boosted by strong markets and a revival in dealmaking.

The surge added an estimated $600 million in state tax revenue and $275 million for New York City. DiNapoli said profits from trading, underwriting and account supervision also fueled the increase.

Why it matters?
Wall Street plays a big role in New York’s economy. It made up 19% of state tax revenue and 7% of city tax revenue last year.

Securities industry jobs also hit a 30-year high, with 201,500 workers in 2024.

Growing concerns
Despite the gains, 2025’s outlook is uncertain. The market rally has slowed, inflation remains a concern, and President Donald Trump’s proposed import tariffs have raised fears of economic disruption.

Major banks like JPMorgan, Goldman Sachs and Morgan Stanley have already cut jobs, and Bank of America recently eliminated 150 junior investment banking roles.

Dealmaking hits a slowdown
Mergers and acquisitions, which drive Wall Street profits, are off to their slowest start since 2009, with only 2,066 US deals announced this year, per Dealogic data. Goldman cut its deal growth forecast from 25% to 7%, citing weak corporate confidence.

What’s next?
Financial analysts predict a tougher year ahead, with market volatility and trade policies influencing Wall Street’s outlook. Some key investment deals have already been put on hold.