NEW YORK (Reuters) - New York State’s top financial officer will release estimates of Wall Street 2012 cash bonuses on Tuesday as public scrutiny of bankers’ pay continues unabated.
New York State Comptroller Thomas DiNapoli will release the closely-watched report on Wall Street compensation and its impact on the city and state at a news conference in Lower Manhattan on Tuesday morning.
DiNapoli said in October that Wall Street bonuses likely fell for a second year running in 2012, dipping below an estimated $19.7 billion for 2011 as the financial industry faces leaner times and tighter regulation
In 2011, Wall Street bonuses fell to their lowest in three years as volatile trading and stiffer regulations took a toll on profits. The overall bonus pool was down 13.5 percent from 2010 and the average cash bonus was $121,150, according to DiNapoli’s report for that year.
The last time the bonus pool shrank for two years in a row was in 2007 and 2008 at the start of the financial crisis, the Comptroller’s office said.
Wall Street is an important source of tax revenue for New York. About 14 percent of New York State tax revenues came from Wall Street in 2011, down from 20 percent before the financial crisis, while the industry’s contribution to New York City’s tax take fell from 13 percent to less than 7 percent.
Other estimates suggest compensation remained flat or grew modestly in 2012 compared with the year before. Johnson Associates expects that bonuses among senior management at financial industry firms expanded 0 to 10 percent last year.
The Comptroller’s estimate is based on personal income tax trends. It reflects cash bonuses and deferred pay for which taxes have been withheld. The estimate does not include stock options or other forms of deferred compensation.
Reporting by Edward Krudy. Editing by Andre Grenon