Goldman, Goldman, Goldman …and… Goldman, Goldman, Goldman Goldman Geldman GeldedMan … and Other Bonus News
By BankersBall on Dec 12, 2006 in Cube Life, Salaries
What did we learn from the Goldman earnings announcement today?
Bonus per employeeTotal comp per employee: $622,000- $16.5BN overall bonus pie
- Overall payout is bigger than last year — up 40% from last year — but it represents a smaller percentage of overall revenue — 43.7% vs. 46.6% last year
- Lower comp ratio is not permanent! The ratio was “‘a direct result of our financial performance this year, not necessarily a permanent shift to a lower comp ratio,’ [said] Chief Financial Officer David Viniar.” “Our financial performance was a big factor in this year’s compensation ratio, which can be higher or lower in the future,” said Viniar.
Sources: Bloomberg, NYTimes, WSJ
Next up:
12/14: Lehman Brothers, Bear Stearns
12/19: Morgan Stanley
On Dec 13, 2006, PK said:
Your post is misleading - $622,000 is average full-year compensation per employee, not just bonus: “Goldman said it was dedicating $16.5 billion for salaries, bonuses and benefit at the end of the year. This translates to an average of $622,000 for each employee, though the biggest payouts are given to top investment bankers who bring in the huge deals.” - From “Goldman Sachs Earns $9.4B in Fiscal Year”, The Associated Press, Dec 12 2006.
On Dec 13, 2006, BankersBall said:
Thanks, corrected.