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Wall Street Bonuses Fall 44%

State may lose $1B in tax revenue

By Ambreen Ali,  Newser User

Posted Jan 28, 2009 4:58 PM CST
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(Newser) – Wall Street firms still dished out end-of-year bonuses in 2008, but they were a lot smaller. Cash bonuses fell 44% from the year prior, from a total of $33 billion to $18 billion, Reuters reports. That drop may take $1 billion in tax revenue from New York state, which is already anticipating a potential $15.4 billion deficit. Ailing financial firms also shed 19,000 jobs, 10% of New York City's financial workforce.

A salary of $100,000 to $150,000 is typical for a wide range of Wall Street jobs, Bloomberg notes. Bonuses, sometimes $1 million or more, usually make up the bulk of employees' compensation. Despite hundreds of billions in taxpayer aid to be injected in the industry, the government and firms are bracing for a rough 2009. "The industry is still continuing to write off toxic assets," the state's comptroller says.

Traders and investment bankers faced a 44% dip in the overall bonus pool last year. A bond trader waits to board a commuter ferry to Manhattan.
Traders and investment bankers faced a 44% dip in the overall bonus pool last year. A bond trader waits to board a commuter ferry to Manhattan.   (AP Photo/Mark Lennihan)
Wall Street workers endured a 44% dip in bonuses last year, a fall that will also hurt state tax revenue.
Wall Street workers endured a 44% dip in bonuses last year, a fall that will also hurt state tax revenue.   (AP Photo/Richard Drew)
More than 19,200 jobs were shed last year, 10% of the New York City Wall Street workforce.
More than 19,200 jobs were shed last year, 10% of the New York City Wall Street workforce.   (AP Photo/Mark Lennihan)
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COMMENTS
Showing 3 of 3 comments
Guest
Feb 5, 2009 4:48 AM CST
Yep, I know governments ought to be run just like businesses: welfare as long as the return on capital (ROC) makes sense; free clinics as long as the ROC makes sense; schools are long as the ROC makes sense; special ed as long as the ROC makes sense; libraries as long as the ROC makes sense; parks are long as the ROC makes sense; healthcare as long as the ROC makes sense; cities as long as the ROC makes sense; towns are long as the ROC makes sense; industrial grants as long as the ROC makes sense. Can we please implement this already? We're getting close -- lots of emergency rooms and hospitals closing due to the inability to get government funds for non-paying patients. I'm sure there's more to be done, more "freebies" to rein in.
bacimom
Feb 2, 2009 3:03 AM CST
let's see. maybe we should force all government officials to work for bonuses that they only get when the measurably succeed at something? hmmm
Guest
Jan 29, 2009 4:02 AM CST
Um, fell 44%???! Shouldn't they have FALLEN 100%? So there're contracts? I'd like to see one of them sue: I was SOO good at my job, my company's now begging for money! Or maybe: I was SOOO good at my job, I decreased my golf handicap. Or maybe: I was SOOO good at my job, our current portfolio went from 100 billion to 10 billion in record time - score! Yeah, a judge will say that's what an employee does to get a bonus....Hey, it's not like we need emergency rooms, roads, hospitals or national security as long as Wall Street gets its bonuses!

Wall Street gave 20% of state funds
Associated Press

Money • US

 
Wall Street • New York City • unemployment • bonuses • budget deficit • tax revenue • employee • financial crisis • state budgets

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