Wall Street’s golden era of pandemic-fueled profits is fading — and salaries have gotten caught in the crossfire. Continuing a downward trend for the second consecutive year, salaries that once soared in New York City’s banking and securities industry are now on the decline. The average salary, including bonuses, fell to $471K in 2023 — marking a 5.2% decrease from the previous year.

• When adjusted for inflation, this drop is even steeper at 8.7% — but despite the downturn, 2023’s average salary remains the third-highest on record.
• Between 2019 and 2023, New York’s employment growth rate was a modest 7.8%, much lower than states like Texas (26.6%) and Utah (40.5%).

The paycheck paradox: As American CEOs and Wall Street bankers cried into their caviar, pretax profits for broker-dealer operations of New York Stock Exchange members climbed to $23.2B in the first half of 2024, an 80% jump from last year. This boost could drive bonuses up by 7.4%, partially offsetting the salary declines. New York State Comptroller Thomas DiNapoli believes, “This year has been very strong so far and profits may continue their upward trajectory, to exceed 2023 levels and boost state and city tax revenues.”