Chart of the week: The return of big bonuses

Bonuses paid out by Wall Street banks took a hit in the aftermath of the financial crisis. But now, they have resumed their steady climb.

683-cotw

In 2006, New York's investment banks paid out $40bn (adjusted for inflation) in bonuses around ten times the budget of the UN, says Economist.com. After the financial crisis bonuses fell, but they are now creeping up again.

The bonus pool jumped by 15% to $26.7bn in 2013, and the average bonus jumped to $164,530, the third-highest average on record all despite a 30% drop in Wall Street banks' combined profits last year.

Subscribe to MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free
https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

Sign up
Explore More