It’s nice work – if you can get it.
Wall Street has cut thousands of jobs over the past year or so. On Tuesday, JPMorgan Chase, one of the country’s biggest banks, announced that it was eliminating 4,000 more jobs through layoffs and attrition, adding its name to a string of large banks that continue to cut jobs to reduce expenses.
The good news? For the employees who remain, pay is up, according to a report released Tuesday by the New York State comptroller.
This may seem surprising given the outcry over high compensation during the financial crisis. In recent years, however, faced with greater regulation, a slow economic recovery and the loss of once big moneymaking businesses like selling products tied to mortgages, the banks have tried instead to cut people rather than pay, which they argue is needed in order to retain talent that might otherwise leave for better paying jobs at hedge funds or elsewhere.
The average cash bonus for people employed in New York City in the financial industry rose by roughly 9 percent, to $121,900, in 2012 and cash bonuses in total are forecast to increase by roughly 8 percent to $20 billion this year, said Thomas P. DiNapoli, the comptroller.
In recent years some firms have deferred cash payments to employees, and Mr. DiNapoli said part of the increase in the 2012 numbers was cash promised in recent years was actually paid out in 2012. He said that it was “tough” to break out what percentage of the total are deferrals but he believed that it was still a small part of the total.
All told, the average pay package for securities industry employees in New York was $362,900 in 2011, the last year for which data is available, almost unchanged from 2010.
Wall Street jobs are harder to get than they were just a few years ago, but for those who can get their foot in the door finance remains the best paying sector in New York City, Mr. DiNapoli told reporters during a confernce call
“Profits and bonuses rebounded in 2012, but the industry is still restructuring. Despite its smaller size, the securities industry is still a very important part of the New York City and New York state economies,” he said.
The current economic recovery, he said, is being driven by industries other than Wall Street, which he said has regained only 30 percent of the jobs lost during the downturn. The securities industry in New York City lost 28,300 jobs during the financial crisis and has added only 8,500 since, a net loss of 19,800 jobs. New York City financial industry employment totaled 169,700 at the end of 2012.
Before the start of the financial crisis, business and personal income tax collections from Wall Street related activities accounted for up to 20 percent of New York State tax revenues. In 2012, that contribution fell to just 14 percent.
“Wall Street is still in transition, but it is very slowly adjusting to changes in its economic and regulatory environment,” he said.
DealBook: Wall Street Pay Rises – for Those Who Still Have a Job
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DealBook: Wall Street Pay Rises – for Those Who Still Have a Job
