Goldman Execs Stay Fat and Happy
Oct 18, 2011 1:07 PM EDT
The investment bank had a lousy third quarter, but employees will still take home billions in bonuses. Gary Rivlin asks, what gives?
Today’s Goldman Sachs earning reports provides a valuable lesson on how things really work inside Wall Street’s largest investment houses. Goldman Sachs had an awful three months, losing $428 million in the third quarter of 2011, and yet it continued to shovel billions into the bonus pool it will share with its employees at year’s end.
Through the first nine months of 2011, Goldman set aside $10 billion in its compensation fund.
If Goldman’s 30,000 employees split that bounty evenly, that would work out to $333,000 per person—plus the billions more Goldman will no doubt set aside in the last few months of the year.
Of course, the receptionist inside Goldman Sachs doesn't receive the same pay as all those analysts and other midlevel suits making salaries of $400,000 a year or more.
Moreover, chieftains like Goldman CEO Lloyd Blankfein, who received $13 million in compensation last year, won’t have to share their year-end bonuses with as many people as last year. The bank laid off 1,300 employees in the third quarter of the year and plans on jettisoning another 1,000-plus jobs in the coming months.
for complete:
http://www.thedailybeast.com/articles/2011/10/18/goldman-execs-stay-fat-and-happy.html?utm_medium=email&utm_source=newsletter&utm_campaign=cheatsheet_afternoon&cid=newsletter%3Bemail%3Bcheatsheet_afternoon&utm_term=Cheat%20Sheet
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