Bankers are some of the most overworked people in the financial industry. Often working 80–120-hour weeks, the industry has come under public scrutiny for its intense expectations. Bankers are well paid for these long hours, receiving bonuses on top of what is often a six-figure salary for those just entering the industry. Bankers’ bonuses are awarded at the end of the bank’s financial year and are intended to reward employee behavior and or increased profits for the bank or some relevant part of its business.
Most recently these banking bonuses saw new heights, with the average bonus paid in New York climbing 20% to a record $257,500. The figure is the highest since 2009 and comes in reaction to the eye-popping revenue increases in January, fueled by booming mergers, public listings, and strong trading activity. Indeed, banks across the country like Goldman Sachs, JPMorgan Chase have made these moves to increase their profits. Many in the city of New York have found the news beneficial for the masses as higher bonuses should “help the city exceed its expected revenue from income taxes.” This may not last super long as the city’s financial planning assumes that markets activity cools off this year and that bonuses for the industry will drop by 17%. What do you think about this increase in bonuses? And will this trend continue across the country?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.