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PAY NEWSFewer jobs, lower salaries, but big bonuses for GS superstars17 December 2007COMMENTSYou guys have been saying for months that bonuses are going to fall. Now bonuses are flat to 20% higher than last year, and you guys keep saying that the crisis is round the corner. Journalists should stick to facts, not opinions or impressions. Read all comments »Lest it be thought we’re coming over scrooge-ish, let us make it clear – Goldman has paid very well, but vultures are circling all the same. The true enormity of the average Goldman Sachs payout won’t be revealed until the firm unearths its 4Q results on Tuesday. But crystalline tit-bits are emerging about its stars. Firstly, chief exec Lloyd Blankfein was handsomely rewarded for saving the firm from the ignominious fate of Merrill Lynch. Last year, Blankfein received around $54m. This year he’ll receive $70m. Secondly, three of Goldman’s Pine Street bankers (in New York) are now a lot richer than the rest. The Wall Street Journal says two out of 16 members of the structured products trading group – Michael Swenson and Josh Birnbaum – were responsible for the sub-prime hedging which enabled the group to make $4bn while other banks lost out. Together with their boss, Dan Sparks, the Journal says Swenson and Birnbaum are likely to have received payouts ranging from $5m to $15m. Over in Canary Wharf, Lehman’s bankers aren’t doing too badly either. Unlike Goldman, Lehman has announced its 4Q results, and they reveal that the standard Lehman bro saw his payout rise 10% to $332,470. Naturally, this doesn’t necessarily mean that good cheer will permeate every crevice. Financial News reports that bankers in Merrill's credit business are being told to expect a 65% reduction in their bonuses, with 75% of them paid in shares. Lehman’s mortgage bankers are unlikely to be feeling particularly festive – thousands have been laid off since the summer, making this the first year since 2002 that the bank has ended the year with fewer staff than it began with. The latest monthly report from recruitment firm Morgan McKinley also highlights the inadvisability of complacency. It found job vacancies were down 9.8% in November compared to October, and average City salaries fell 5% month on month to £47.7k. Morgan McKinley points out that the number of new jobs always falls at this time of year, but chief exec Rob Thesiger says the future remains opaque: “There are too many conflicting views in the market currently to make any firm predictions for the coming year and we won’t be able to judge the full impact of the past few months until the bonus season is over.”
COMMENTSAnonymous, Student, Mon 17 Dec 07well...surely there's not that many jobs for juniors, even with IB on your CV. I am thinking of going against the trend, get a good job "away" from IB! Add your comment »Trader, Derivatives, Mon 17 Dec 07You guys have been saying for months that bonuses are going to fall. Now bonuses are flat to 20% higher than last year, and you guy skeep saying that the crisis is round the corner. Journalists should stick to facts, not opinions or impressions Add your comment »Recruiter, Investment Banking, HR & Recruitment, Mon 17 Dec 07I think this is a pretty accurate story and fair comment by Mr Thesiger.
anon, Capital Markets, Tue 18 Dec 07are u kidding?? lehman bonuses were absolute crap.. a lot of ppl got screwed.. dont believe the hype! Add your comment »Anonymous, Derivatives, Mon 24 Dec 07The Bonus payout from Lehman is crap. It is a joke! Add your comment »Endema, Accounting, Thu 03 Jan 08Why are all those people complaining about their bonuses and salaries? Have those people ever tried to work for an Italian firm dislocated in a developing country for less than € 1,000/month with a temporary contract renewed every 6 months, no bonuses and nothing else no matter how skilled you are, how much you have invested in your education and whether you have performed beyond the target given?!? Add your comment »Investment *anker, Investment Banking / M & A, Tue 22 Jan 08Endema, too bad if you decide to work for the Italians. Lazyness and corruption are endemac there! I got a 41% bonus increase. Add your comment »Anonymous, Tue 29 Jan 08Fire them all, the housing price will come down and us regular folk will be able to buy a nice house at a normal price. Add your comment » |
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