Post by unlawflcombatnt on Jul 14, 2009 17:27:55 GMT -6
from the New York Times dealbook blog:
July 14, 2009, 10:48 am
[url=http://dealbook.blogs.nytimes.com/2009/07/14/sizing-up-goldmans-bonus-pool/
]Sizing Up Goldman’s Bonus Pool[/url]
by Peter Edmonston and Cyrus Sanati
"Profits at Goldman Sachs have made a roaring comeback — and so has its legendarily huge bonus pool.
In reporting its much better-than-expected quarterly earnings on Tuesday, Goldman also announced that it has set aside the tidy sum of $11.36 billion for employee compensation and benefits through the first half of 2009. That figure includes salaries as well as the firm’s annual bonuses, which are often the envy of Wall Street.
Tuesday’s number works out to about $386,429, on average, for each of the roughly 29,400 employees, consultants and temps on Goldman’s payroll as of June 26....
It’s only a half-year figure, so it’s too early to know how Goldman’s workers will fare for all of 2009. But it’s clear that Goldman’s bonus machine is running well ahead of where it was in the summer of 2008.
A year ago, when the mortgage crisis was gathering steam, the comparable compensation figure at Goldman was $8.52 billion, or $243,514 per worker. (In those happier days, the firm had about 35,000 employees.)
In fact, Goldman’s per-employee compensation is close to where it stood in the middle of 2007, when Wall Street was booming. Halfway through that year, Goldman had set aside $392,756 per worker.
Goldman’s rising pay-per-worker reflects a surge in its net revenue, and, to a lesser extent, the cuts in its work force.[and all the taxpayers' money pumped into by bailing out Goldman and its counterparties.]
Goldman’s net revenue stood at nearly $23.2 billion halfway through 2009, 31% above the comparable figure in 2008. Goldman is setting aside about 49% of that revenue for its compensation pool
[How about if it was set aside to pay back some the taxpayer-funded bailouts that Goldman got it's little cockroach hands on?]....
However, some had expected Goldman to be a bit less generous. Analysts at Bank of America, for example, had been projecting Goldman would earmark just 44% of revenues for compensation and benefits.
[Oh, come on! How stingy can you get? The poor babies at Goldman are only getting only a measley $386K.]
The prospect of fat bonuses at Goldman is good news inside 85 Broad Street, as well as for businesses that depend on well-paid Wall Streeters. But given that Goldman only recently returned $10 billion in government aid, lawmakers may take a slightly different view.
On a conference call with analysts Tuesday morning, David Viniar, Goldman’s chief financial officer, noted that bonus decisions aren’t made until the end of the year. He also pointed out that Goldman’s compensation expense isn’t just salary and bonuses —it also includes items such as severance pay."
July 14, 2009, 10:48 am
[url=http://dealbook.blogs.nytimes.com/2009/07/14/sizing-up-goldmans-bonus-pool/
]Sizing Up Goldman’s Bonus Pool[/url]
by Peter Edmonston and Cyrus Sanati
"Profits at Goldman Sachs have made a roaring comeback — and so has its legendarily huge bonus pool.
In reporting its much better-than-expected quarterly earnings on Tuesday, Goldman also announced that it has set aside the tidy sum of $11.36 billion for employee compensation and benefits through the first half of 2009. That figure includes salaries as well as the firm’s annual bonuses, which are often the envy of Wall Street.
Tuesday’s number works out to about $386,429, on average, for each of the roughly 29,400 employees, consultants and temps on Goldman’s payroll as of June 26....
It’s only a half-year figure, so it’s too early to know how Goldman’s workers will fare for all of 2009. But it’s clear that Goldman’s bonus machine is running well ahead of where it was in the summer of 2008.
A year ago, when the mortgage crisis was gathering steam, the comparable compensation figure at Goldman was $8.52 billion, or $243,514 per worker. (In those happier days, the firm had about 35,000 employees.)
In fact, Goldman’s per-employee compensation is close to where it stood in the middle of 2007, when Wall Street was booming. Halfway through that year, Goldman had set aside $392,756 per worker.
Goldman’s rising pay-per-worker reflects a surge in its net revenue, and, to a lesser extent, the cuts in its work force.[and all the taxpayers' money pumped into by bailing out Goldman and its counterparties.]
Goldman’s net revenue stood at nearly $23.2 billion halfway through 2009, 31% above the comparable figure in 2008. Goldman is setting aside about 49% of that revenue for its compensation pool
[How about if it was set aside to pay back some the taxpayer-funded bailouts that Goldman got it's little cockroach hands on?]....
However, some had expected Goldman to be a bit less generous. Analysts at Bank of America, for example, had been projecting Goldman would earmark just 44% of revenues for compensation and benefits.
[Oh, come on! How stingy can you get? The poor babies at Goldman are only getting only a measley $386K.]
The prospect of fat bonuses at Goldman is good news inside 85 Broad Street, as well as for businesses that depend on well-paid Wall Streeters. But given that Goldman only recently returned $10 billion in government aid, lawmakers may take a slightly different view.
On a conference call with analysts Tuesday morning, David Viniar, Goldman’s chief financial officer, noted that bonus decisions aren’t made until the end of the year. He also pointed out that Goldman’s compensation expense isn’t just salary and bonuses —it also includes items such as severance pay."