A trader monitors activity on the floor of the New York Stock Exchange. [Reuters]
A trader monitors activity on the floor of the New York Stock Exchange. [Reuters]

Wall Street's "fat cats" — a term for the highly paid financial elite — are set to grow even wealthier, buoyed by a boom in AI investment and rising stock trading volumes.

The Wall Street Journal reported Tuesday (local time) that New York State Comptroller Thomas DiNapoli projects the state's securities industry will earn more than $90 billion this year. That would far exceed last year's profit of $65.1 billion.

The strong earnings are driven by a surge in AI investment, a pickup in mergers and acquisitions, and higher trading volumes stemming from increased market volatility. All three major indexes on Wall Street also rose Tuesday on optimism over corporate earnings reports due starting next week, with NASDAQ hitting a record high.

Bonuses for securities industry workers are also expected to set a new record this year. Last year's total Wall Street bonus pool reached $49.2 billion, itself a record, and this year's payout is projected to surpass it. The average bonus per employee last year was $246,900, while average total compensation including base salary came to $561,770.

Hiring in the industry is also picking up. Financial sector employment in New York City rose 3.5 percent from the prior year to 207,400 workers last year. Preliminary data suggest an additional 5,300 jobs will be added this year.


kate01@heraldcorp.com