$420,000 for each of Goldman's 22,000 workers worldwide

Discussion in 'Commodity Futures' started by richardyu301, Oct 20, 2005.

  1. BARLI

    BARLI

    Think* , not Thing... windiff letter "G" is not even close to letter "K", are you another kid fooling around on here or what?
     
    #101     Dec 5, 2005
  2. WinDiff

    WinDiff

    only suckers pay $25 per round-turn...
     
    #102     Dec 5, 2005

  3. Did you fail 6th grade English?
     
    #103     Dec 5, 2005
  4. WinDiff

    WinDiff

    No, I am just a non-native english speaker wasting time arguing with you...

    :D
     
    #104     Dec 5, 2005
  5. WinDiff

    WinDiff

    No, I am just a non-native english speaker wasting time arguing with you...

    :D
     
    #105     Dec 5, 2005
  6. tomcole

    tomcole

    So, there you have it -- hes a former GS employee who has trouble with written English! Or he failed 6th grade!!!
     
    #106     Dec 5, 2005
  7. One

    One

    "Goldman Sachs: Culture of Success" is an interesting read, particularly as to how the business evolved to incorporate client business and proprietary trading.
     
    #107     Dec 5, 2005
  8. Just to clarify a few things:
    i) $420,000 is just the bonus, not including basic salary and things such as health benefit.
    ii) $420,000 is just the estimate given several wks ago. The latest estimate is $11B total bonus for 22,000 staff. So the avg bonus is even higher

    thx.

     
    #108     Dec 5, 2005
  9. im long GS and staying that way

    just seeing how they dominated the NYSE/ARCA deal
    in every way imaginable with an ex. goldmine at the top of NYSE group,,, look out...... goldmine dosent fuck around either, I remember their ways at the CBOT when I was there.... they are mean and lean
     
    #109     Dec 5, 2005
  10. jrsmee

    jrsmee

    Actually, I just saw an article on the fact they now expect 12 billion, but that is still total compensation. Here's the old article. Either way, the bottom line is they are still make a lot of money. No wonder they're consistently ranked the second most desirable company to work for by MBA students (second to McKinsey).

    Copyright 2005 The Financial Times Limited
    Financial Times (London, England)

    October 4, 2005 Tuesday
    London Edition 1

    SECTION: COMMENT & ANALYSIS; Pg. 19

    LENGTH: 647 words

    HEADLINE: Managers claim greater restraint in pay and recruitment policies

    BODY:


    While senior executives at investment banks try to convince analysts to push their share price forecasts up, they want employees to tone their bonus expectations down.

    This year's third quarter, generally the slowest, set earnings records for several investment banks and raised expectations of a bonanza for employees. While bonuses are typically not confirmed until December, car salesmen and estate agents have been salivating thanks to Goldman Sachs - which reported record third-quarter earnings, delivering an 84 per cent increase in net income - and to Morgan McKinley, the City of London recruitment consultancy that last month highlighted employee expectations of increased bonuses.

    During the technology bubble, compensation and other expenses rose sharply and the ranks of highly paid investment bankers and research analysts soared. By 2001, after the bubble had burst, banks on Wall Street and in London were slashing jobs.

    Banks say that this time employee and other costs are under control. Sam Molinaro, chief financial officer of Bear Stearns, says: "The Street has got a better handle on expenses."

    That discipline is evident in one aspect of recent growth: the limited use of multiple-year guaranteed bonuses to attract staff. While second-tier banks that want to build up their businesses, particularly in foreign markets, still make use of such guarantees, the largest, established banks insist they have largely abandoned the practice. That should introduce a degree of flexibility into their compensation bills, by far their biggest cost. "Investment banks in general are a lot better at paying top performers and not paying people who have had a modest or a poor year," says one European banking executive. "I would be surprised if they got away from that."

    While compensation levels are being kept at or below 50 per cent of net revenue, investment banks are willing to try to enter business lines where they do not necessarily have a competitive edge - such as prime brokerage, energy trading and cash equities - to try to keep earnings growing. Asked about their plans for boosting headcount, many executives express caution, arguing that they are reluctant to take on many extra staff when levels of activity may not prove sustainable.

    "You won't see us overhiring," says an executive with a large London-based bank. "We've got to be operating at close to capacity for a while before we say it's time to bring in reinforcements."

    There are exceptions. Lehman Brothers and Bear Stearns employ more people than they did in 2001: Lehman employed 22,047 people at the end of the quarter, up 14 per cent from a year earlier, and it intends to increase headcount by 5 to 10 per cent next year. Bear Stearns boosted staff numbers by 7 per cent over the year ending in August to 11,500.

    The increase can be partly explained by the fact that Bear Stearns and Lehman have built large, labour-intensive, mortgage businesses that originate the loans people use to buy houses. They have also added a mixture of junior level bankers and traders as well as some costly senior hires.

    Other banks have also been hiring, including Goldman Sachs, which boosted headcount by 8 per cent to 22,032 people in the past year.

    "That bids up the price of talent," says David Sidwell, Morgan Stanley's chief financial officer, who warns that history could repeat itself in a downturn. "If you have a situation where revenues fall, you can't just pay people less."

    As it stands, most banks have set aside more for employee compensation so far this year than they did last year. Goldman Sachs expensed Dollars 9.25bn (Pounds 5.27bn, Euros 7.77bn) for compensation and benefits in the first nine months of fiscal 2005, an increase of 15 per cent over the same period a year earlier. That works out to about Dollars 420,000 per employee. Lehman has expensed Dollars 5.4bn - an increase of 25 per cent.

    LOAD-DATE: October 3, 2005
     
    #110     Dec 5, 2005