NEW YORK, Feb 29 (Reuters) - Cash bonuses to be paid to New York City securities workers for their 2011 performance are expected to slide 14 percent to $19.7 billion as stiffer regulations took a toll on profits, New York State’s comptroller said Wednesday.
The securities industry, which still has not recovered fully from the 2008 financial crisis, is expected to cut the average cash bonus by 13 percent to $121,150, Comptroller Thomas DiNapoli said in an interview with MSNBC.
Profits of the broker/dealer units listed on the New York Stock Exchange fell sharply in 2011 and will not exceed $13.5 billion, DiNapoli said, down by more than half from $27.6 billion in 2010. It was the second year in a row that profits fell by more than half.
“The securities industry, which is a critical component of the economies of New York City and New York State, faces continued challenges as it works through the fallout from the financial crisis and adjusts to regulatory reforms,” he said.