Apparently some recessions can be selective. According to a recent survey, total compensation for New York City financial professional is up 6% compared to last year (up to $20.8 billion) with firms devoting almost 47% of revenue to paying their employees.
The increase saw a 21.9% increase in wages while average cash bonuses for Wall Street executives fell by 9%. This decrease in bonus compensation can be explained by a combination of increased regulatory scrutiny and an increase in option-based compensation.
New York State Comptroller Thomas DiNapoli reiterated this sentiment, “Cash bonuses are down, but that’s not an indicator of weakness on Wall Street.” DiNapoli continued, “Wall Street is changing its compensation practices in response to regulatory reforms adopted in the aftermath of the greatest financial meltdown since the Great Depression.”