If you’re wondering where in the world to build your finance career, today’s release from the Wall Street State Comptroller provides a pretty clear answer: Wall Street. While European banks are contemplating job cuts and European IBD fees are falling, Wall Street is going through the roof. This is what you need to know.
1. There’s a lot of hiring and it’s accelerating
The New York finance industry added 2,300 jobs in 2014. This was the first year of job gains since 2011, and job growth accelerated during the first eight months of this year.
2. Wall Street pay is rising
The average compensation package on Wall Street (salary and bonus) is now $405k (£266k). This is as high as it was in 2007. In the City of London, average earnings (admittedly across all industries) are more like £100k.
3. The 2014 bonus pool was the third highest ever
The average bonus paid to the average Wall Street worker was $179.2k last year.
4. Over the past three years, the average Wall Street bonus has risen by 50%
European bonuses are squeezed by the EU bonus cap. Wall Street bonuses are not.
5. Average Wall Street salaries are rising too
The way banks tell it, salaries rise and bonuses fall and overall compensation stays the same. Not on Wall Street: bonuses have risen and salaries have risen too. In 2014, the average salary rose by $145k to $405k. This was a record.
6. New York State can’t bash Wall Street because it’s dependent upon the industry for tax revenues
Around 18% of New York State tax revenues derived from the securities industry in 2014. And this didn’t include money the industry paid in fines. While presidential hopefuls might bash Wall Street, the state has every interest in nurturing the golden goose as best it can.