Wall Street bonuses soar 9% to record $49.2B in 2025 — NY comptroller says ‘good for state and city budgets'

• Average annual compensation in finance rose 7.3% to $505,677 in 2024, nearly five times the average in the rest of New York City's private sector, with bonuses comprising 42% of wages
• Wall Street drove 20.2% of all economic activity in NYC in 2024 and contributed 19.4% of state tax collections and 8.4% of city tax revenue, with the higher 2025 bonuses projected to generate an extra $199 million in state income tax and $91 million for the city
• The record bonuses come as Mayor Zohran Mamdani considers wealth taxes to address the city's $12 billion budget gap, while other states aggressively recruit financial workers with promises of lower taxes and better living standards

Wall Street Bonuses Hit Record $49.2B in 2025

Key Figures:

Wall Street bonuses reached a record $49.2 billion in 2025, up 9% year-over-year, according to New York State Comptroller Thomas DiNapoli. The average bonus climbed 6% to $246,900, driven by industry profits surging over 30% to $65.1 billion. Strong trading, underwriting, and asset-management fees fueled the gains.

Compensation Data:

Average annual salary in finance, including bonuses, rose 7.3% to $505,677 in 2024—the second-highest on record and nearly five times the average in New York City's broader private sector. Bonuses comprised approximately 42% of total wages.

Economic Impact:

Wall Street accounted for 20.2% of all New York City economic activity in 2024, delivering 19.4% of state tax collections (fiscal year 2024-25) and 8.4% of city tax revenue (fiscal year 2025). The higher 2025 bonuses are projected to generate an additional $199 million in state income tax revenue and $91 million for the city.

Market Context:

Despite domestic upheavals and international conflicts—including Trump administration trade policies and Middle East tensions—the financial sector demonstrated resilience. However, DiNapoli warned of slower job growth and geopolitical risks posing extraordinary threats to short- and long-term outlooks.

Political Implications:

The figures emerge amid fiscal pressures, with New York City facing a $12 billion budget shortfall. Mayor Zohran Mamdani is considering wealth taxes or property rate hikes, while competition from Texas and Florida intensifies as those states attempt to lure financial professionals with lower taxes. The bonus data may fall short of budget forecasts, which assumed increases of 25.9% (state) and 15.1% (city).