Remember, 76% of New York bankers earn less than $250k
How high is banking pay in New York City? Today's report from the Office of the New York State Comptroller is a reminder that for some people in the Securities Industry (defined as debt and equity underwriting, M&A and sales and trading), pay is very high indeed. But for most people, it is not.
Last year, the New York State Comptroller says the average salary (confusingly defined as average salary plus bonus) for securities workers in New York state was $516k. In Manhattan, it was $521k. In Long Island, where the hedge funds are, it was $920k.
As the chart below shows, 2021 was a record year for banking pay. Compensation rose to record levels, driven by record bonuses, which were themselves driven by record profits.
2022 is unlikely to be so kind. The comptroller is predicting a minimum 22% decline in bonuses this year, maybe more. At the same time, however, he thinks employment numbers in the industry in New York are rising again. - Last year, 600 jobs were lost. In 2020, 2,900 jobs went. This year, headcount is expected to rise by 1,600 people.
Not all those people will be earning half a million dollars. In fact, very few will. The state comptroller's numbers are also a timely reminder that pay in banking is heavily skewed towards a few high earners: they state that 76% of people in the New York Securities industry earn less than $250k.
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