Outlook uncertain after bonus pool reaches record heights.

As Wall Street’s profits rose, the industry’s bonus pool hit a record high in 2024 too, according to new data.

The total bonus pool for Wall Street firms hit a record $47.5 billion last year, up 34% from the previous year, according to estimates from the New York state comptroller’s office, which are based on income tax withholding trends.

“Robust economic growth led to increased trading, account supervision, underwriting, and selling revenues, driving strong profits and helping generate the first significant bump in the average bonus estimate since 2021,” it said in a release.

Alongside the surge in bonus allocations, employment also reached its highest level in the past 30 years, with firms employing 201,500 workers, up from 198,400 in 2023, the state comptroller said. It reported the average bonus was up 31.5% to $244,700.

State and city tax revenues generated by Wall Street also rose in response to the higher profits and bonuses.

The state comptroller’s office estimated the industry’s bonuses “will generate $600 million more in state income tax revenue and $275 million more for the city when compared to the previous year,” which outpaced the governments’ budgetary expectations.

“The record high bonus pool reflects Wall Street’s very strong performance in 2024,” state comptroller Thomas DiNapoli said in a release. 

“This financial market strength is good news for New York’s economy and our fiscal position, which relies on the tax revenue it generates. However, increasing uncertainty in the economy amid significant federal policy changes may dampen the outlook for parts of the securities industry in 2025,” he noted.

The bonus pool estimates include bonuses paid for work performed in 2024 and bonuses deferred from prior years that were cashed in during the year, they don’t include stock options, or other forms of deferred compensation that don’t involve withholding taxes.