As the K-shaped economy rages on, gasoline and diesel prices at the pump spike, and risks of food inflation later this year mount, Wall Street's bonus pool surged to a record in 2025, even as the Trump administration insists the inflationary shock is temporary.
On Thursday, New York State Comptroller Thomas DiNapoli released a new report showing that the Wall Street bonus pool surged to a record $49.2 billion in 2025, up 9% from the previous year, while the average bonus rose 6% to $246,900.
"Wall Street saw strong performance for much of last year, despite all of the ongoing domestic and international upheavals," DiNapoli said.
Bloomberg noted, "The total pool is the largest in records going back to 1987."
DiNapoli continued, "When Wall Street does well, it's good for our state and city budgets, which are reliant on the industry's significant tax contributions."
Wall Street bankers entered 2026 with momentum after generating a record $134 billion in trading revenue last year.
Top executives expect dealmaking and trading revenue to remain strong this year, but the Trump administration's crusade across the Americas and the Middle East, seen as an effort to pressure China, has heightened geopolitical tensions, sparked market turmoil, stoked inflation fears, and darkened the near-term outlook.
"However, we are seeing slower job growth, and geopolitical conflicts have global repercussions that pose extraordinary risks for the short- and long-term outlook on the financial sector and for broader economic markets," DiNapoli said.
The report showed that the city's securities industry edged down slightly to 198,200 jobs in 2025, from a three-decade high of 201,500 in 2024. The Office of the State Comptroller expects that figure to be revised higher when annual data adjustments are made.
Wall Street accounted for about 19% of New York State's tax revenue between 2024 and 2025. The bonuses are expected to generate $199 million more in state income tax revenue and $91 million more for NYC than in 2024.
For NYC socialist Mayor Zohran Mamdani, who faces budget woes, it is probably not a smart idea to wage war on capitalism, or more of the industry will leave for red states.