Wall Street bonuses top $21.5 billion
Strong M&A business helped biggest year since 2000
By David Weidner, MarketWatch
Jan. 11, 2006
NEW YORK (MarketWatch) - The financial industry awarded $21.5 billion in bonuses at yearend, a 15% increase over 2004 and the highest bonus pool since the bubble year, 2000, New York State Comptroller Alan Hevesi said Wednesday.
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The average bonus on Wall Street was $125,500 up 10% from the previous year with top bonuses going to mergers and acquisitions bankers who saw deal volume rise 28%. Bankers generally earn base salaries of $150,000 to $300,000, according to estimates.
The record bonuses also come amid a year in which revenue at Wall Street firms surged 44.5% during the first three quarters of 2005 above the same period the previous year.
New York City employed 174,000 bankers at yearend, an increase of more than 8,000, or 5.3%, from the previous year. Early indications are that compensation and employment continue to rise, the comptroller said.
"We will have a good carryover into 2006," Hevesi said. 'This is great news. I'm delighted we are booming."
The state expects $1.5 billion in tax revenue from the bonus pool. New York City will collect nearly $500 million. New York employes 21% of the securities industry workforce nationwide.
The bonus pool topped the $18.6 billion handed out in 2004. Last year's number was revised from $15.9 billion. The previous record was $19.5 billion.
David Weidner covers Wall Street for MarketWatch.
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