A NOTE ABOUT JOBS:
Morgan Stanley chief James Gorman said last week, “there’s way too much capacity” — meaning extra people — “and compensation is way too high.” Still. “The industry is still overpaid.”
And Gorman and his Wall Street peers have also figured out that their employees have nowhere to go if they’re unhappy.
So look out below — still. In the early ’80s, the average Wall Streeter made only twice the average private-sector income in other industries. It rose to six times that during the bubble years — but it’s now back to five times the average salary, and sinking.
AND NOTE HOW IT AFFECTS NEW YORK’s BOTTOM LINE:
In 2008, Wall Street covered about $4.5 billion of the city’s tax payments — 12 percent of the total. Last year, it was $2.8 billion — 7 percent.
The state, meanwhile, got $8.7 billion from the securities industry last year, or 14 percent of its tax dollars. That was down from $12 billion — or 20 percent — in 2008. (The state numbers are bigger because Albany relies so heavily on income taxes.)