Wall Street average bonus rose 15% in 2013

A sign saying Wall Street Wall Street firms are increasingly deferring bonus payments

Related Stories

Wall Street bonuses rose 15% last year, to the highest level since the global financial crisis, according to the New York state finance chief.

The average bonus rose to $164,530 (£99,000) in 2013, with total bonus payments rising to $26.7bn, state comptroller Thomas DiNapoli estimated.

His report said the payments were boosted in part by "compensation deferred from prior years".

It focuses only on bonuses paid to bankers and brokers in New York City.

"Wall Street navigated through some rough patches last year and had a profitable 2013," Mr DiNapoli, said in a statement.

"Although profits were lower than the prior year, the industry still had a good 2013 despite costly legal settlements and higher interest rates."

Deferred payments

Since the global financial crisis unfolded, regulators have called on Wall Street's banks and brokerage firms to offer longer-term bonus structures.

This, the regulators believe, would prevent employees from making high-risk investments that boost their bonuses in one year, but could cause longer-term financial damage.

Instead, employees would be forced to consider the future prospects of the investments they make.

As a result, there has been shift toward more deferred compensation.

According to Mr DiNapoli's report, over the past two years the bonus pool has grown by 44%, driven by compensation deferred from prior years.

"Wall Street continues to demonstrate resilience as it evolves in a changing regulatory environment," said Mr DiNapoli.

More on This Story

Related Stories

More Business stories

RSS

Features

From BBC Capital

Programmes

  • A person taking a photo of fireworks on a smartphoneClick Watch

    A look at the latest gadgets which could make it easier to take the perfect night-time picture

BBC © 2014 The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.