The average compensation – salary including bonuses – in New York City’s securities industry was $375k in 2016 – five times higher than the $75k average for the rest of the private sector. However, less than one-quarter – 23% – of the industry’s employees in the city earned more than $250k, according to New York State Comptroller Thomas DiNapoli’s just-released report.
Granted, only 2% of New Yorkers across the rest of the city’s workforce earned at least that much. Still, the fact that more than three-quarters of all Wall Street employers make less than that is an indication that a select few mega-earners are pulling up the average significantly while the median all-in compensation total is much lower.
For reference, Goldman Sachs Chairman/CEO Lloyd Blankfein’s pay last year was $24m and J.P. Morgan Chase chairman/CEO Jamie Dimon’s total 2017 compensation was $28.3m. Meanwhile, Mike Corbat, the CEO of Citi and Brian Moynihan, the CEO Bank of America Merrill Lynch, both got $23m and James Gorman, the CEO of Morgan Stanley, took home $27m. The comp for those five men alone skews the average noticeably.
In addition, after adding jobs for three consecutive years, Wall Street employment was basically flat year-over-year, dipping slightly in 2017 to 176,900 jobs. Despite gains from 2014 to 2016, New York City securities industry employment is still 6% smaller than before the pre-crisis peak in 2007, while the rest of the private sector has grown by 23%, according to the comptroller.
On the bright side, DiNapoli’s report found that securities industry profits rose in 2017 for the second year in a row – they jumped up 42% last year, totaling $24.5bn, after growing by 21% in 2016. Also, the average bonus paid to industry employees in New York City increased 17% to reach $184,220. To reiterate, though: Average figures can be deceiving.
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