If there were a metaphor for the state of the investment banking employment market, the newly released results for Goldman Sachs' London operations in 2018 would seem to be it. They suggest that Goldman Sachs' 4,067 UK staff worked harder last year and generated increased (operating) profits. But - on average - the salaries paid at the bank fell.
The newly released results for Goldman Sachs International show the firm generating operating profit of $3.3bn on revenues of $7.9bn in 2018, up from $6.6bn and $2.4bn, respectively, the year before.
For this, Goldman's UK staff were each paid an average salary of $408k (£314k) in 2018, down from $474k one year previously.
Goldmanites might have reason to feel aggrieved, except (naturally), there were some mitigating circumstances. - The firm reclassified all its professional services staff (consultants) as external employees last year, and removed their pay and headcount from its calculations. It looks like those consultants were paid higher salaries than Goldman's full timers.
Salaries aren't the only thing that matters in banking jobs. Goldman Sachs International spent a further $405m in share based compensation - or bonuses last year. This amounted to an average bonus of $100k (£77k) per head.
The charts below show operating profits and revenues by division, and headcount by division at Goldman Sachs International in 2017 and 2018. The large drop in headcount in Goldman's UK support functions was likely to be partly the result of reclassifying professional services staff. Meanwhile, Goldman increased staff in investing and lending.
Goldman's salespeople and traders in the institutional clients division generated average operating profit of $1.4m per head last year. Its investment bankers each generated average operating profit of a mere $659k.
How high are salaries at Goldman Sachs in London?
The average salary is $408k (£314k).
How high are bonuses at Goldman Sachs in London?
The average bonus is $100k (£77k).
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