UK
In the next few days Goldman Sachs is due to reveal the true dimensions of its bonuses. Will they live up to expectations?
Goldman will report its 4Q results next Tuesday, and is expected to disclose bonus numbers to MDs later this week and to junior staff early next week.
Although the firm’s profits rose 30% in the first nine months of this year, the Telegraph predicts bonuses won’t share that lustre.
It says total comp at Goldman will be up 10% in 2007 on 2006, but that additional headcount means the average employee is expected to see a 7% drop in his/her allocation to (a mere) 293k.
Headhunters offer widely divergent predictions on Goldman’s payouts. “The general noise is that the average will be up 10-20%,” says the chief exec of one esteemed boutique. “And the stars will be up 30% on last year.”
The head of another niche search boutique sides with the Telegraph and says flat to down is the order of the day: “Goldman have a bigger pot, but it needs to be shared between more people,” he explains. “Overall it’s 5-6% down.”
He adds that while star performers in areas like principal investments and prop trading are likely to be paid up substantially (expectations are apparently for increases of as much as 40%), others at the firm are going to be paid down to accommodate this.
At the same time, rivals are in no position to reward staff generously this year, removing the need for Goldman to pay up to prevent poaching. “It takes a lot for someone to leave Goldman,” says the headhunter. “They are very aware of this – the retention premium in bonuses will be removed.”
Paid at Goldman? Let us know how much.
The rumour is that it is going to be the biggest bonus round in Goldman’s history, with associates pocketing 300-500k and VPs up to 1mm. And because Golman’s bonuses are the largest, it is going to be the biggest bonus round ever.
It’s going to be bigger than big. What makes these bonuses especially good is also knowing that staff at other banks are in for a lousy bonus.
Let’s wait and see )) the Clinton is not that scary as his Bill !
Oh yeah… they are going to be big, they are going to be huge, fat, fleshy, hefty, porky… actually some of the GS partners are kinda nervous. The current socio-political climate is peculiar (eg Northern Rock debacle, falling house prices, attacks to Gordon Brown always round the corner etc…) and the GS eggheads fear that too much publicity around these bonuses may eventually backfire. They will keep the bonuses quiet, but they (the bonuses) will be as porky as they can humanly be
They will surely discount the smaller bonuses on the other institutions to mark theirs down. Pay better, but don’t overpay. Always the philosophy.
Hi, I will be joining GS’s Controllers department as an Analyst next year. My contract does mention a “discretionary bonus”, does anyone know what this is likely to be as I am not front office like in this article!
hahaha
wait till next week associates, you are in for a shock
I’m sure they are worth every penny…NOT!
you shouldnt believe everything you see, i think you all in for a shock thiss year, and not for good reason..
First let’s see what GS’ mortgage writedown is going to be. Generally, to be paid LESS than the street every historical year just because you work at GS is a sign of vanity. This year, however, I agree GS will have a better bonus pool than most.
They will be gargantuan..you’d better believe it. we will wallow in our filthy lucre and enjoy the warm slime of wealth nourishing our needy souls.
AGREE – GS pays less than many banks for VP and below.
Some of these comments are rubbish… since when Goldman has paid less than the competition? I did not know that was the way you attract the best people in investment banking. And why should they care about how much the comp pay?? There is a simple rule of deciding the bonus pool, it’s a percentage of your profits. So if you have record profits, you will have record bonuses. The individual desks will have to fight, sure, but for a larger bonus pool, which is a good problem to have. Agree that some of the associates can get screwed even in a good year, but on average they will do so far better than their colleagues elsewhere. The bonuses at GS will be monstrous this year, horribly huge, and will raise a few eyebrows in some political community…
Goldman equities staff got their bonuses today. They’re happy and all the more happy given that they know they will happier than everyone else.
hi guys,
how much should a client coverage job pay in a top inestment bank. at VP or Director levels.
I personally can’t wait for mine. Got a good review and I expect to reap the rewards of a bloody hard year!
i have a question … Quite curious to know…If Goldman is paying up..wonder what you all are doing sitting around on a jobsite for ?
Please do not forget that at GS there are huge differences between m&a, desks which do not make enough money and teams who make a lot of moeny. Despite making huge profits with ZERO exposure to sophisticated products no one understands, IBD comp is relatively low at junior level within the firm.
My sentiments exactly….if Goldmans is paying you all that fab bonus, what are you all doing searching job sites????