Goldman Full Year Compensation Per Employee: $498,153, Firm Reports Negative Compensation Expense In Q4
Goldman reported a blow out EPS number today on a minor miss to revenue: this was mostly due to a substantial cut to employee compensation accrual, which went down from an annualized accrual of $20 billion previously to $16.193 billion for FYE 2009. In fact in Q4, Goldman reported a negative expense to compensation and benefits of ($519) million compared to $5.351 billion in Q3. Did Rahm have some tete-a-tetes with Lloyd recently? With 32,500 FTE, per employee compensation was $498,153. We will provide bonus numbers for some key individuals in the days ahead.
From the filing:
Compensation and benefits expenses were $16.19 billion for the year and were 35.8% of net revenues. [This is materially lower from the recent historical average of 46.7%] This ratio of compensation and benefits to net revenues was down from 48% for 2008 and represented the firm's lowest annual ratio of compensation and benefits to net revenues. In the fourth quarter, compensation was reduced by $500 million to fund a charitable contribution to Goldman Sachs Gives, which is reflected in the negative compensation and benefits expenses of $519 million for the quarter.
Another relevant data point: VaR for Q4 dropped from $208 million to $181 million, mostly due to a decline in interest rate VaR and an increased Diversification Effect from (87) to (103), which we still are curious as to how this is calculated, while equity prices VaR surprisingly increased from $51 in the year ago and $74 in the quarter ago to $89. The same thing with commodity prices which is now at the high side of the channel, coming in at $38. Is Goldman becoming too complacent with its expectation that there will be no volatility in the interest rate market? With Goldman expecting a substantial tightening in 10 years, even as Morgan Stanley sees a dramatic increase in 10Y yields, what happens if Goldman is right and MS is wrong? We will have much more to say on long bond rates later today. The answer may shock you.
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on Thu, 01/21/2010 - 09:42
#200615
These guys are now backpedaling furiously to escape the heat. What a bunch of crass frauds. Pox on them.
on Thu, 01/21/2010 - 09:45
#200617
This from the Goldman bird-dogger Huff Post:
http://www.sportsbybrooks.com/man-who-brought-down-spitzer-to-tee-up-tiger-27572
Sometime in 2004 I got a call from one of my best customers, a Goldman Sachs guy who had an apartment in Trump United Nations on a high floor. He was a class act, and once a month or every three weeks or so, he’d call me and say, “Jace, I have three young men I want to reward. I want your finest. Three hours. Overcharge me. Whatever you want.”
On this occasion he said, “Send your best,” and I sent him Kaitlin, one of the few hot shit working models making a lot of money, a nineteen year old Brooke Shields look alike. I sent her over thinking it was a Wall Street guy she was taking care of, but when she came back, she was dancing the hula, all excited, bragging about Tiger Woods.
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Didn't see this line item in today's Q4 report.
on Thu, 01/21/2010 - 10:01
#200638
Ahh it must be wonderful to work for 'the firm'.
To know you're a friend of ours among friends of ours over here.
To be a made man in the firm. Good old GS , Government Securities. Yes indeedy.
-MobBarley
on Thu, 01/21/2010 - 10:22
#200657
Anybody remember what GS's tax bill was, and its percentage of revenue?
DavidC
on Thu, 01/21/2010 - 10:25
#200661
What difference would that make? You typically pay taxes on your earnings, not your revenue...
on Thu, 01/21/2010 - 10:35
#200674
No...Earnings are after you pay the government. the tax rate for 2009 was around 32-33 pct.
on Thu, 01/21/2010 - 10:22
#200658
Blows my mind how a company that produces absolutely nothing vaccuums up so much money that they average 500k per year in compensation for 35000 people.
Regardless of what you think of huge bonuses and profit...this just doesn't pass the smell test.
Where is the competition in the market place that should have these wages and compensation at more reasonable levels? It's clearly broken.
on Thu, 01/21/2010 - 10:44
#200684
500k. After taxes in New York thats about 230,000US$. Thats all? After all the trillions given to wall street? Where is the rest of the money? I dont believe it.
on Thu, 01/21/2010 - 10:48
#200688
WTF is wrong with people...GS caters to every BS request by the populice and it never seems to be enough...I am FAR from a GS fan, but let's cut them some slack here....worry about yourselves for a minute you whiney bums.
on Thu, 01/21/2010 - 12:01
#200776
oh nos! some GS secretary can't buy her birkin bag this year.
on Thu, 01/21/2010 - 12:26
#200830
New rule....Bonus payout ratio per revenue figure should never exceed the taxrate per revenue.
What was their taxes paid per revenue???? That is the CAP rate for their bonus payout.
All in favor?