Wall Street Bonuses Hit Record High in 2025 – But 2026 Outlook Dims

In 2025, Wall Street's securities industry experienced an exceptional year, reflected in the rise in bonuses. The total bonus amount reached a record $49.2 billion, representing a 9% increase compared to the previous year. New York State Comptroller Thomas P. DiNapoli revealed that the average individual bonus grew by 6%, reaching $246,900. This increase was driven by profits, as Wall Street earned pre-tax profits of $65.1 billion in 2025, an increase of over 30% compared to $49.9 billion the year before.

DiNapoli commented that, despite the ongoing domestic and international crises, Wall Street demonstrated strong performance for much of the past year. He highlighted that Wall Street's success benefits state and municipal budgets. However, he also warned about the slowdown in job growth and the geopolitical risks that pose short- and long-term challenges.

The gains recorded on Wall Street were driven by strong trading activity, securities underwriting, and asset management fees. However, it's important to note that, adjusted for inflation, the real bonus record was achieved in 2006, with $53.7 billion in current dollars, indicating that the nominal record of 2025 is just that: nominal.

Wall Street's presence in New York remains significant. In 2024, the industry accounted for 20.2% of all economic activity in the city and 19.4% of state tax collections in the last fiscal year. DiNapoli estimates that the 2025 bonuses will generate an additional $199 million in state tax revenue and an additional $91 million for the city compared to the previous year, which is crucial given the uncertainty of federal funds.

In 2024, the average salary in the securities industry in New York City, including bonuses, increased by 7.3%, reaching $505,677, the second-highest recorded. This figure is nearly five times the average salary in the rest of the city's private sector. Bonuses alone accounted for approximately 42% of all industry wages.

Despite these positive figures, there are warning signs. The industry's headcount decreased to 198,200 in 2025, from a high of 201,500 in 2024. New York's share of national securities jobs has decreased to 17.9%, compared to approximately one-third of the national total in 1990, while cities like Dallas and Miami have aggressively expanded their financial sectors.

The concern now focuses on whether 2026 can match the performance of 2025. New York's budget plans could be too optimistic, as the governor's proposed budget assumed a 25.9% increase in financial sector bonuses in the current fiscal year, while the city projected a 15.1% increase in securities bonuses. According to DiNapoli's estimate, both targets seem unattainable.

President Trump's escalating tariff agenda has shaken the equity markets in early 2026, and Wall Street's hiring momentum has stalled. With one in 13 jobs in New York City directly or indirectly related to the securities industry, what happens next has implications that go beyond the trading floor.