Wall Street bonuses for the operators in the sale of products such as stocks, bonds and other securities will rise by 7.4% in 2024 due to a surge in fees for investment banks occasioned by a revival in the volume of deals, as reported by New York State Comptroller Thomas DiNapoli on Wednesday.

This is the first expected bonus hike in two years, as companies come out of a previously rather subdued M&A landscape. Pure economic strength, a stock market rally and possibly lowered interest rates have tipped companies into mergers, acquisition and issuing of stocks and bonds.

Our research shows that bonuses constitute a major component of the total employee remuneration in the Wall Street financial services industry, and that this industry strongly influences the provision of both New York City and New York State public services and employment programs.

Securities industry related employment was distributed across the New York City as follows: As at 2022, securities related employment accounted for one of every eleven employment opportunities in New York City. Also, the financial industry is one of the biggest users of offices as well as the major contributor to the property taxes revenues.

The Comptroller’s report has estimated that in the FY 2024, this industry will contribute $5.1 billion in terms of tax revenue to NYC.

While bonuses, annual performance reviews and restructuring activities, may be lucrative, a total of 3,400 jobs could be cut down in the year 2024 from the previous year, the report highlighted. These reviews are usually applied in the investment banks to remove the inept and minimize wastage by lowering their employees’ productivity.

This report stands out because the Comptroller explains significant factors within the U.S.’s financial capital. A preview of these trends was by major Wall Street firms set to begin reporting their earnings on Friday more information regarding these trends is anticipated to be released.

Reporting by Niket Nishant in Bengaluru ; Editing by Shreya Biswas