At Goldman, the Average Pay for Three Months Is $135,594
Despite an effort by Goldman Sachs to keep compensation costs low, its earning statement, which was released today, revealed that the company paid $4.34 billion to its employees in the first three months of 2013. That equates to an average of $135,594 per person in a company with 32,000 employees. It is also worth noting that the wages of lower-level employees like secretaries and other supporting staff members weigh down this number drastically. Chief Executive Officer Lloyd Blankfein claims that it is hard to cut wages because top performers will move to private equity or “more nimble investment banks.” To offset the high wages, Blankfein has decreased employment by 400 people between the first quarter of this year and the first quarter of last year. The result has been a decrease of compensation costs by more than a third, as well as a 26% decrease in revenue. Meanwhile, Blankfein received a stock bonus of $13.3 million.
After the trouble Goldman Sachs got into in the recent past, I would expect the company’s managerial staff and higher-level employees to see pay decreases. However, the company has unfortunately laid off workers to make up for the still outrageously high wages of upper-level employees.
Written by: Constantine Kostikas