Wall Street, No Bonus Party This Year

[Image source=AP Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] This year, it will be difficult to witness the Wall Street bonus extravaganza. Even Wall Street, which has held annual bonus celebrations, is expected to face inevitable setbacks due to the novel coronavirus disease (COVID-19).

According to a report released on the 24th (local time) by the New York State Department of Financial Services (NYDFS), the financial industry's damage caused by COVID-19 is expected to reduce the average bonus on Wall Street this year. Last year, Wall Street's average bonus increased by 3% to $164,000 (approximately 200 million KRW).

Thomas DiNapoli, New York State Comptroller, said, "Last year, Wall Street recorded a good year with strong performance, but this year, profits are expected to decline significantly due to COVID-19."

According to the New York Stock Exchange, the pre-tax profits of Wall Street's securities sector grew for the fourth consecutive year, increasing by 2.8% last year to $28.1 billion (approximately 35 trillion KRW).

Although only about 182,000 people work on Wall Street, they earn 20% of the total private sector wages in New York City.

The prospect that there will be no bonus celebrations on Wall Street this year has deepened the concerns of the New York state government. This is because the taxes paid by Wall Street constitute a large portion of the budgets of New York City and the state government. The taxes Wall Street pays to New York City amount to $3.7 billion (approximately 4.6 trillion KRW), accounting for 6% of the city’s budget. The taxes paid to the state government total $13.2 billion (approximately 16.3 trillion KRW), representing 17% of the state budget.

Comptroller DiNapoli said, "Wall Street contributes significantly to the tax revenue and employment of New York City and New York State," adding, "This year, tax revenues collected from Wall Street are expected to decrease, so preparations must be made for a budget shortfall."