Back in 2009, that figure was slightly more than 36% of profits, and it has crept steadily higher. This year, bonus payouts will amount to a whopping 170% of the profits reported by New York stock exchange member firms – profits that continue to be eroded by legal settlements and regulatory expenses. ![]() Because what good is it rewarding employees for bringing revenue through the door if it isn’t profitable revenue? It’s only folks like you and I – and, one would hope, at least some of the investors – who might want to take a look at these numbers and tie them to profits. ![]() Bonuses don’t come out of a bank’s profits, but out of its revenues. Of course, here’s where the fun and games start on Wall Street. This year’s gains are more modest: the New York State comptroller, Thomas DiNapoli, announced the average bonus would edge up only 2%. In 2013, to be sure, the contrast was more marked: a 30.1% decline in profitability, and a 15% increase in bonus payments. In fact, it’s the second year in a row that a decline in profitability has been accompanied by a gain in the size of bonus checks. ![]() But, reflecting the new clout of banks and bankers, bonus payments didn’t dip in response to this decline.
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