Bankers and traders will be celebrating the prospect of massive, multimillion dollar payouts — and they’ll use the mega-expenses of year-end blowouts as write-offs for their inflated tax bills, according to industry sources.
The average total Street compensation surged 13 percent last year to $422,500 — the most since the financial crisis — and that figure is expected to grow in 2018.
Compensation consultants Johnson Associates predict that equity sales and trading pros will see the biggest surge in their cash and equity bonus booty, by as much as 20 percent from last year. And they also will feel the most pain.
“The taxes on their income this year are enormous, especially if they live in Manhattan, where it can be as high as 54 percent,” said Robert Charron, who leads the tax practice at Friedman LLC.