![]() ![]() ![]() Wall Street accounts for 16% of all economic activity in the city.Average pay is more than five times the average of the rest of the private sector and almost double the compensation in information services, the next highest paying sector.Adjusted for inflation, pay ended up just below the previous record set in 2007. Last year, average pay on Wall Street rose to $516,560, the first time that salaries have topped half a million dollars.The report’s key data points show the securities industry’s outsized role in the economy: “If the shift to remote work proves to be a permanent structural change in New York City, it presents a significant risk to the city’s finances in the future,” the report said. ![]() The move toward remote and hybrid work also threatens property tax revenues in future years, the comptroller noted, since financial services occupies a little more than a quarter of all the office space in the city. “As the comptroller points out, it could get worse, and both the city and state need to be working at restraining spending.” “Profits the last two years were unusually high and unlikely to continue, but it does put the city’s and state fiscal situation at risk,” said Ana Champeny, research director at the Citizens Budget Commission. Because New York City relies on the property tax as its largest source of tax revenue, the industry provides only 8% of all taxes to the city. The industry accounts for 22% of all taxes collected by New York State - mostly through personal income taxes, which increased by some 43% in the last fiscal year ended March 31. The city and state will soon feel the pain. Meanwhile, since Wall Street borrows enormous sums to finance its activities, rising interest rates will send its costs soaring. Revenue from the trading of stocks and bonds has fallen and crucial investment banking fees from bringing initial public offerings to market or arranging mergers and acquisitions have dropped. Members and sponsors make THE CITY possible.įor the industry nationwide, pre-tax profits plunged by 56% for the first half of the year to $13.5 billion. ![]() The annual comprehensive report on the securities industry released Tuesday by state comptroller Tom DiNapoli shows that New York City’s share of all jobs in that industry has continued to decline, reaching a 33-year low of 17.7%, compared with a 33% share two decades ago. Goldman’s move to relocate mid-career and operational jobs to lower-cost and fast-growing cities in the South and West is being replicated across Wall Street - draining jobs and tax revenues from New York City and the region. “Our vision for this is that in the same way we have developed a really good talent base in places like London and Hong Kong and New York, I think there will be people who come to Dallas and want to work in fintech and do that at Goldman Sachs,” said Stephanie Cohen, who co-leads the investment bank’s consumer and wealth management division, earlier this year. The tower would be the firm’s second-largest U.S. And in June the Dallas City Council approved $18 million in tax breaks to help Goldman Sachs build an almost $500 million new office tower in the city where it expects to employ 5,000 people. A year ago, Goldman Sachs employed about 2,000 people in Dallas. ![]()
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