Strong trading, underwriting drive higher payouts, though risks and hiring slowdown loom ahead
Wall Street compensation moved higher in 2025, with the average bonus hitting $246,900, marking a 6% increase from the previous year, according to figures released by the New York State Comptroller.
The overall bonus pool for New York City’s securities industry reached a new high of $49.2 billion, reflecting a 9% rise as firms benefited from a rebound in earnings.
That growth was supported by a surge in profitability, with industry profits jumping more than 30% to $65.1 billion. Gains across trading, underwriting, and asset management were key drivers, underscoring the sector’s ability to generate revenue despite ongoing market uncertainty.
“Wall Street saw strong performance for much of last year, despite all of the ongoing domestic and international upheavals,” said New York State Comptroller Thomas DiNapoli. “When Wall Street does well, it’s good for our state and city budgets, which are reliant on the industry’s significant tax contributions. However, we are seeing slower job growth, and geopolitical conflicts have global repercussions that pose extraordinary risks for the short- and long-term outlook on the financial sector and for broader economic markets.”
Although bonus payouts reached a nominal record, they remain below the inflation-adjusted peak recorded in 2006, highlighting the long-term impact of rising costs.
Employment in the securities industry edged down slightly to 198,200 in 2025 from a multi-decade high the year before, though revisions are expected to show modest gains.
The industry continues to play a major role in New York’s economy, accounting for roughly one-fifth of activity in New York City and a similar share of state tax revenue.
Higher payouts are also expected to lift tax collections, generating an estimated $199 million in additional state income tax revenue and $91 million more for New York City compared with the prior year.
Despite the strong showing in 2025, the outlook remains uncertain as hiring slows and geopolitical tensions create potential headwinds for future performance.
