Goldman Sachs to cut banker bonuses by up to 40%
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Goldman Sachs slashes bankers’ bonuses by up to 40% after deal-making revenue plummets
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Wall Street giant Goldman Sachs is reportedly considering a bonus cut of at least 40 percent this year.
The cuts will be deeper than rivals’, said the Financial Times, as CEO David Solomon grapples with costs.
A senior Goldman banker told the FT, “I think we’ll be worse than the street.”
Profit drop: Goldman Sachs plans to reorganize its business and reported a 44% drop in profit in the third quarter
The expected cuts would be the worst since the financial crisis and follow a peak year in 2021 when Wall Street banks enjoyed record fees from IPOs and mergers.
Rivals JP Morgan, Citigroup and Bank of America are reportedly cutting all investment banking bonus pools by 30 percent.
A Goldman spokesperson told the FT: “The compensation process has not yet been completed, so any discussion or prediction of specific numbers is premature.”
It plans to reorganize its operations and reported a 44 percent drop in profit in the third quarter.
There was a big drop in dealmaking revenue.
In January, Goldman increased its annual bonus pool for top performers by 40 percent to 50 percent.
Total wages and benefits for 2021 are up 33 per cent to £14.5 billion.