Rahul Sen Sharma, co-CEO and president of financial services company Indxx, explains why his company chose Miami over New York.
Lower taxes, better weather and more space make Miami more attractive than Manhattan, he said. The CEO will move to Miami from New York in early 2024 and said "there's probably nothing" that will stop him from leaving.
There is a debate about the future of New York as the world's financial center and which city might replace it. While Manhattan is home to Wall Street and its pillars, the question has been raised in recent years: Is longtime financial capital destined to move south?
Billionaire Ken Griffin said in November that Miami could soon overtake New York as a major center for markets and financial professionals. Last year, he moved the headquarters of his hedge fund Citadele from Chicago to the Sunshine State.
Rahul Sen Sharma, New York-based president and co-CEO of financial market index provider and data company Indxx, is no longer a question of where he wants to work. Every employee at his company is now based in Miami, and he plans to join them in early 2024.
Sen Sharma told Business Insider, "Historically, we only had one office in New York, but during COVID-19, we opened a small office in Miami and quickly realized that there were very attractive benefits." "First, from a business point of view, the tax structure is more beneficial for both individuals and companies. Second, from a business point of view, it is cheaper; third, the cost of hiring employees is also cheaper from a salary point of view. Low. "
In fact, he said he spends "a lot" of time in Miami, even though he hasn't officially moved yet. The CEO noted that the company had some employees come to the U.S. from India, and that Indxx initially located them in Miami because they had more office space. The plan was to eventually move them from Florida to New York, but the team liked Miami so much that no one moved. Census data shows that Americans have recently moved to Florida, and a SmartAsset analysis found that New Yorkers earning $650,000 or more could save nearly $200,000 a year in taxes and living expenses by moving to Miami.
To that end, Amazon founder Jeff Bezos announced in November that he would move from Seattle to Miami, where he could save millions in taxes. The changing financial center
Sen Sharma believes that New York has usurped its status as the financial capital of the world. However, he still sees many companies and customers following Indxx's footsteps heading south. "I see offices opening and growing in South Florida and on [Florida's] east and west coasts," he said. "I think based on everything I've seen, that growth is expected to not only continue, but should be relatively sustainable."
New York is getting less tax revenue from Wall Street, and financial firms aren't adding as many New York workers as they once were. In contrast, the technology sector accounts for a much larger share of New York's employment, has grown steadily over the past decade, and has grown more rapidly over the past three years.
"While [Wall Street] remains important, its share of the city's economy has declined, accounting for less than 20 percent of wage income by 2022," the New York Comptroller's Office said in a report. A report on employment trends released by the city in October. "At the same time, the tech industry is growing rapidly in terms of both employment and revenue."
Technology and financial securities jobs in New York. Office of the Comptroller of New York
For his part, Sen Sharma said that "probably nothing" could convince him to stay in New York in 2024. "We no longer have office space in New York, nor do we have any long-term leases," he said. “To be a nimble and nimble company like ours, we go where it's easiest to do business. From a corporate tax or recruiting and retention standpoint, Florida seems to have more advantages than New York right now. "
