Bonuses abound on Wall Street

ALBANY, N.Y. – Employees at Wall Street financial firms collected more than $20 billion in bonuses in 2009, the year after taxpayers bailed out the financial sector amid the economic meltdown, New York state Comptroller Thomas DiNapoli said Tuesday. The payouts were about 17 percent higher than the previous year’s bonuses.

Total compensation at the largest securities firms grew beyond that figure and profits could surpass what he calls an unprecedented $55 billion last year, DiNapoli said. That’s nearly three times Wall Street’s record increase, a rate of growth that is boosted in part by the record losses in 2008 of nearly $43 billion, the Democrat said.

“Wall Street is vital to New York’s economy, and the dollars generated by the industry help the state’s bottom line,” said DiNapoli. “But for most Americans, these huge bonuses are a bitter pill and hard to comprehend. … Taxpayers bailed them out, and now they’re back making money while many New York families are still struggling to make ends meet.”

The projections would make the average bonus $124,850. In 2008, the average was $112,000, according to DiNapoli’s office. For many of the biggest firms, total compensation was up 31 percent, while sector-wide the average was a 27 percent increase to over $340,000, DiNapoli’s spokesman said.

DiNapoli supports reforms that require Wall Street bonuses to be tied to long-term profitability, to force more stability in the volatile markets and “make sure the securities industry thrives without driving the rest of us out on a fragile economic limb.”

DiNapoli reviews tax collections each year and bases his annual projection of Wall Street bonuses on income and other taxes paid in New York City.