At the risk of confirming suspicions that we’re obsessed with Goldman Sachs (which we’re really, really not), here’s another revelation regarding The Firm.
In any normal year, Goldman would announce and pay bonuses to its junior analysts around now. This year, however, it seems it will be announcing and paying analyst bonuses at the end of the year along with bonuses for the rest of its staff.
Goldman declined to comment on the change, or the reasons behind it.
Delaying bonuses until December may create cash flow issues for Goldman juniors who were expecting to be paid in time for the remains of the summer.
It will also leave Goldman analysts out of kilter with the rest of the market: JP Morgan, Citigroup, UBS and Merrill have already announced analyst bonuses; Morgan Stanley is expected to do so next week.
Goldman’s proposed delay may suggest that demand for analysts is picking up and that it’s afraid of poaching. Withholding bonuses for another six months is a great way of retaining junior staff at no extra cost.