::Bonuses on Wall Street Workers Reach Rp187 Trillion>>

Go Finance Reporting in New York - Bonus workers in the financial center of Wall Street, New York, United States (U.S.) during 2010 reached USD20, 8 billion (Rp187 trillion). The amount is nine percent lower than the previous year as the implementation of financial reforms, including restrictions on bonuses.

Under the Financial Supervisory Agency official report of New York Thomas DiNapoli, the average Wall Street employee cash bonus during the past year is USD128.530 (Rp1, 15 billion). The report is based on estimates of bonus payments on the capital markets industry working in the City of New York.

Although in the midst of efforts initiated limitations banking bonuses governments and politicians, overall compensation in the form of share increased six percent over the previous year. In terms of wages, increased sharply by 21.9 percent in the first half of 2010.

Unlike most other employees, professionals on Wall Street usually receive most of their annual compensation in the form of year-end bonuses.

"Past practices appreciated the short-term gains at the expense of long-term benefits," DiNapoli said, quoted by Reuters on Friday (02/25/2011).

According to the report, along the 2010 corporate profits on Wall Street USD27, 6 billion, following the positive performance of 2009, where profits reached USD61, 4 billion. The increase in stock compensation triggered the anger of U.S. citizens who do not like the financial industry after the bailout by the government in 2008.

However, the bonus amount based on a report the banking consolidation throughout 2010 even mentions the nominal amount of the big five banks on Wall Street reached USD119 billion. Among these banks are Goldman Sachs Group Inc. paid an average bonus of USD431 thousand (Rp3, 8 billion), Citigroup Inc. (USD94 thousand or Rp846 million).

Wall Street is the area that became the pillars of financial economics at New York area. However, due to financial crisis, Wall Street's contribution to the state in cash receipts to be only 13 percent from the previous 20 percent. As for New York City, his tax contributions only seven percent compared to 13 percent before the crisis.

With bonuses in the form of stock options, the bankers and brokers receive deferred compensation so that no income tax arrears to the government.

According to DiNapoli, although payment of taxes to local government delayed, However the financial industry on Wall Street will be more stable and balanced. This is because the compensation that is deferred will accumulate in the future when the tax is paid as compensation paid in cash.

According to politicians, the impulse to defer bonus compensation is intended to limit risk in case the next financial crisis. (GoFinance)