Despite a decline in profits
Goldman-Sachs is considering higher bonuses for top traders
November 14, 2023, 11:53 p.m
Listen to article
This audio version was artificially generated. More info | Send feedback
The year isn’t over yet, but everything indicates that it won’t have been a successful one for Goldman Sachs – on the contrary. Nevertheless, management is apparently thinking about pampering some employees with bonus payments.
Goldman Sachs bosses are considering higher bonuses to retain top traders and dealmakers this year, according to insiders. Despite a third-quarter profit decline, Goldman executives discussed bonuses for top employees in its commercial and investment banking division, which accounts for about 68 percent of revenue, people familiar with the matter said. The additional bonuses could help win over some employees who were disappointed by the lower payments in 2022. Recently, some top bankers left Goldman Sachs.
Salaries on Wall Street vary widely depending on performance and market conditions, and bonuses make up a large portion of compensation – in some cases more than double an employee’s annual salary. Goldman Sachs’ profits shrank sharply in the third quarter due to high write-downs on real estate investments and the GreenSky fintech business. The leading US investment bank made a profit of $2.06 billion between July and September – a drop of around 33 percent within a year.
After an unsuccessful and costly foray into the private customer business, which resulted in losses of around $3 billion over the past three years, CEO David Solomon returned the bank’s focus to its traditional investment banking and trading business. Goldman Sachs has also identified asset management as another growth area. In January, the group laid off over 3,000 employees, and further layoffs followed over the course of the year.