Wall Street bonuses in 2012 are projected to be $20 billion, an 8 percent increase over last year, New York State Comptroller Thomas DiNapoli reported Tuesday. Part of the increase is due to a bigger portion of bonuses in recent years being given as deferred compensation rather than cash, he said.
The state is starting "to see the impact of deferred payments and so some of the change that we're seeing coming out this year has to do with bonuses awarded in earlier years," he said during a news conference.
The financial crisis of 2008 led to reforms in the securities industry that increased the amount of deferred compensation. The average cash bonus was $121,900 in 2012. Wall Street profits tripled in 2012 to $23.9 billion from $7.7 billion in 2011, he said. Part of that increased profitability was due to downsizing, he said.
The securities industry accounts for 14 percent of state income tax revenue, giving it a large role in the state's financial picture.