Wall Street is fattening its paychecks even as it slashes jobs. The New York financial sector has been cutting employees in recent years. But those who have held on to their jobs brought home more money than they did two years ago. Their pay was close the pre-recession highs in 2007, according to a report from the New York State comptroller.
The average salary of financial industry employees in New York City rose to $362,950 in 2011. That’s a 16.6 percent increase from two years ago.
In the same period, the industry’s revenue fell by 22 percent as a result of weaker trading and investment banking activity.
Investment banks have been under pressure to get lean, as new laws passed after the financial crisis, a slowdown in the global economy, and record low interest rates have eaten away at their business.
As demands to reduce costs continue to mount, banks have taken to cutting jobs as a way to preserve profits rather than lowering salaries. Wall Street firms let go of more than 75,000 people in 2011 and analysts estimate that the industry will have up to 15 percent fewer employees in 2013 than at the start of 2012.
“The securities industry remains in transition and volatility in profits and employment show that we have not yet reached the new normal,” Thomas DiNapoli, New York state comptroller, said in a statement.
