Bloomberg News

Goldman Sachs Sets Aside Smaller Share for Banker Pay

October 17, 2013

Goldman Sachs Group Chief Executive Officer Lloyd C. Blankfein

Chief Executive Officer Lloyd C. Blankfein allocated 41 percent of revenue, down from 44 percent in the first nine months of 2012, as he seeks to boost returns. Photographer: Scott Eells/Bloomberg

Goldman Sachs Group Inc. (GS:US), the bank that gets most of its revenue from trading, set aside a smaller portion for staff pay in the first nine months of the year than in 2012.

Compensation, which includes salaries, benefits, bonuses and the expense of deferred pay awarded in prior years, fell 5 percent to $10.4 billion in the first three quarters from a year earlier, the New York-based company said today in a statement. Revenue in the same period increased 2 percent to $25.4 billion.

Chief Executive Officer Lloyd C. Blankfein, 59, allocated 41 percent of revenue, down from 44 percent in the first nine months of 2012, as he seeks to boost returns. Last year, the firm cut expenses in the fourth quarter, bringing the total pay pool to 38 percent of revenue, the second-lowest figure since Goldman Sachs has been a public company.

The compensation expense is enough to pay each of Goldman Sachs’s 32,600 employees $319,755 for the nine months. The firm set aside $11 billion in the same period of 2012, equal to an average $336,442 for each of the 32,600 people employed by Goldman Sachs at the time.

Compensation for corporate and investment bankers at JPMorgan Chase & Co. (JPM:US), the largest U.S. lender, fell 4.4 percent in the first nine months from a year earlier. The $8.69 billion represented 31 percent of revenue at the unit, which was created last year when the company combined its investment bank with the corporate bank and treasury and securities-services units.

Figures for average pay don’t represent what any employee actually receives and are calculated by dividing the total compensation expense by the number of workers.

To contact the reporters on this story: Michael J. Moore in New York at mmoore55@bloomberg.net; Laura Marcinek in New York at lmarcinek3@bloomberg.net

To contact the editors responsible for this story: David Scheer at dscheer@bloomberg.net; Christine Harper at charper@bloomberg.net


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Companies Mentioned

  • GS
    (Goldman Sachs Group Inc/The)
    • $186.25 USD
    • 0.17
    • 0.09%
  • JPM
    (JPMorgan Chase & Co)
    • $59.13 USD
    • -0.16
    • -0.27%
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