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.
Still, there are no doubt plenty of frowns inside Goldman today. For one thing, this was only the second time the investment bank has reported a quarterly loss since going public in 1999. For another, though this year promises to be a fat one, it won’t be as rich as 2010.
President-elect Donald Trump will nominate former presidential candidate and anti-vaccine activist Robert F. Kennedy Jr. to...
Arizona remained in a tense waiting game on Saturday for its election results, even as neighboring...
The war in the Gaza Strip is taking a catastrophic toll on children. At least 14,000...
Several professors at universities around the US are facing disciplinary actions in regard to their support...
