One upside to downsizing on Wall Street: Cash bonuses jumped 9% to nearly $121,900 last year.
Total bonuses rose 8% to $20 billion, according to New York state Comptroller Thomas DiNapoli. That’s a reversal from 2011, when bonuses fell 19%, to a revised tally of $18.5 billion.
Overall, bonuses are still short of levels during the height of the financial crisis in 2008 and 2009, when they totaled over $22 billion in each year. Average bonuses were also higher during those years, at about $140,000.
“Profit and bonuses rebounded in 2012, but the industry is still restructuring,” said DiNapoli, in a press release.
Wall Street profits in 2012 didn’t just rebound — they tripled.
Broker/dealer operations in New York reported profits totaling $23.9 billion in 2012, compared to $7.7 billion in 2011. The comptroller described it as “among the most profitable years on record.”
However, fewer people are sharing the wealth. The industry — dominated by firms like Goldman Sachs, Morgan Stanley, JPMorgan Chase and Citigroup — has slimmed down since the financial crisis, which led to the bankruptcy of Lehman Brothers and the sell-off of Bear Stearns and Merrill Lynch.
There are 10% fewer jobs on Wall Street since 2008, the comptroller said, and fewer workers receiving bonuses.
Average salaries for the industry rose slightly from $362,900 in 2011. The comptroller didn’t have the exact figure for for 2012.
