On an average compensation per head basis, Goldman Sachs is the best paying investment bank globally. In 2012, it paid its average global employee $400k. However, Goldman’s generosity to its employees all around the world is nothing compared to its generosity to employees in London. Last year, the average banker at Goldman Sachs International – the bank’s London office – was paid $676k, or 70% more than the global average.
The figures are available in results for Goldman Sachs International on the firm’s website. Last year, Goldman Sachs employed 5,663 people in London and paid them a total of $3.8bn. Compensation per head increased substantially (from just $183k in 2011) as a result of changes in the value of shares awarded to employees as bonuses. In 2012, the average employee at Goldman in London benefited from a windfall of $140k as the price of stock-based bonuses increased.
Whilst the high pay for Goldman bankers in London may be good news now, it could prove a double-edged sword. Last year, the bank said it planned to increase headcount most substantially in four low cost locations: Salt Lake City, Bangalore, Singapore and Dallas. Of the 5,313 people working at Goldman Sachs International, 2,581 are in support functions and could find their jobs at risk if their roles can be fulfilled more cheaply elsewhere.