Wall Street bonus pool set to break records again: compensation spending up nearly 10% year-on-year, with last year's average annual bonus already exceeding $240,000.

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Driven by the stock market rally and a rebound in M&A activity, Wall Street's major banks have seen profits soar, and a record-breaking bonus pool may be on the horizon.

On October 23rd, according to media reports, an annual report released Thursday by New York State Comptroller Thomas DiNapoli showed that in the first half of this year, the 130 securities industry listed companies on the NYSE posted profits of $30.4 billion. At this growth rate, their full-year profits are expected to challenge historical highs.

While Wall Street enjoys a bumper year, employee bonus pools are also likely to hit new records. Data shows that compensation expenses in the first half of 2025 rose nearly 10% compared to the same period last year, meaning that after last year's record average annual bonus of $244,700, Wall Street's bonus pool may continue to increase significantly. Last year, the average annual salary in New York City's securities industry reached $505,630, five times the average wage of the city's private sector.

Regarding this, DiNapoli expressed that the increase in banking compensation will boost tax revenues, which can be used for key investments in public services. The latest report shows that taxes from New York City's securities industry in the most recent fiscal year rose 35.1% to $6.7 billion. He stated in a statement:

"Though there are still uncertainties around interest rates, inflation, and the broader economic outlook, Wall Street looks poised for another strong year."

Wall Street's trading divisions this year seized the opportunities brought by market volatility triggered by tariffs and the stock market rally driven by AI-related tech stocks. Morgan Stanley, JPMorgan Chase, Bank of America, Citigroup, Goldman Sachs, and Wells Fargo reported $15.4 billion in third-quarter trading revenue, the highest level for the same period in at least five years.

Meanwhile, the latest forecasts from compensation consulting firms have also revised previous estimates. Previously, they projected a 14% decrease in the bonus pool due to economic outlook and geopolitical uncertainty. In August this year, compensation consultancy Johnson Associates Inc changed its outlook on Wall Street bonuses after bankers saw a pickup in M&A and other deal-related activity.

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