Average Comp Rises To $403,281 As Goldman Offsets Decline In FICC, Equity Trading With Prop Revenue At 2 Year High

Tyler Durden's picture


Moments ago Goldman reported its Q1 earnings which were strong enough to beat the highest Wall Street estimate, printing at $4.29 on an estimate range of $3.33 to $4.27/share. Revenue was $10.09 billion on estimates of $9.65 billion. What is notable is that while the bank is eating the lunch of its competitors, as it tends to do, in virtually all revenue categories (IB at $1.41 billion, FICC $3.22 bn, Equities: $1.92 bn, Investment Management $1.32 bn, and Prop trading $2.07 bn), it still was unable to match its prior year revenue in the key "client flow" categories of FICC and equities, which dropped from $3.46 billion to $3.22 bn, and $2.25 bn to $1.92 bn, respectively. How did Goldman offset the secular decline in market participation by everyone else? By doing what it does best: prop trading - in Q1 the firm's "Investing and lending" group, aka its Prop group, reported revenue of $2.068 billion (highlighted in the chart below) well higher than the $1.973 billion in Q4 and $1.911 a year earlier. This was the highest prop trading revenue reported by Goldman since Q1 2011 when, as we reported in February, the world was on the verge of being fixed. It wasn't, and the result was a collapse in Goldman prop trading in Q2 2011. Will this year repeat? This remains to be seen.

However, for now, Goldman's employees are happy: in Q1 compensation benefits were $4.34 billion, or 43% of revenue. And with Goldman reporting "only" 32,000 total staff at period end, or the lowest since the great financial crisis, the average compensation per employee is once again above the "psychological" $400K barrier, or $403,281 on a trailing 12 month basis to be exact. Bollinger time, boys.

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Tue, 04/16/2013 - 08:03 | 3455526 stinkhammer
stinkhammer's picture

$400k worth of shit each; average

Tue, 04/16/2013 - 08:49 | 3455643 Bangin7GramRocks
Bangin7GramRocks's picture

These assholes are the "takers". The guy who works his ass off for $12 an hour and is so poor that he doesn't pay income tax. He is a "maker". Goldman Sachs produces absolutely nothing for society! Cunts all of them!

Tue, 04/16/2013 - 08:53 | 3455660 LawsofPhysics
LawsofPhysics's picture

Relax, when the supply lines break.  The skilled craftsman and his reliable tribe will be better positioned.

Tue, 04/16/2013 - 09:49 | 3455941 Richard Chesler
Richard Chesler's picture

Thank you muppets, errr clients.

Tue, 04/16/2013 - 08:03 | 3455530 freewolf7
freewolf7's picture

It's good to be king.

I'm so tired of this sh*t.

Tue, 04/16/2013 - 08:43 | 3455623 Buckaroo Banzai
Buckaroo Banzai's picture

Another false flag attack, another record Goldman compensation announcement.

If you don't think those two things are connected-- however distantly-- you are not paying attention.

Tue, 04/16/2013 - 08:49 | 3455642 LawsofPhysics
LawsofPhysics's picture

Same as it ever was.  Nothing will change until guillotines come out and the heads start rolling.  Move along.  Absolute power corrupts, absolutely.  

Tue, 04/16/2013 - 08:05 | 3455533 buzzsaw99
buzzsaw99's picture

This is the only thing the fed or d.c. cares about.

Tue, 04/16/2013 - 08:06 | 3455537 q99x2
q99x2's picture

They don't have to print real numbers now that Holder has their back.

Tue, 04/16/2013 - 08:09 | 3455542 firstdivision
firstdivision's picture

...and its any wonder how the hell they have clients to begin with.  Seriously, all you hear about is how they fucked over their clients, especially when it comes to M&A.  Why do businesses continue to utilize this company is beyond me.

Tue, 04/16/2013 - 08:22 | 3455586 buzzsaw99
buzzsaw99's picture

it's a club, and you ain't in it

Tue, 04/16/2013 - 08:44 | 3455627 firstdivision
firstdivision's picture

I don't like getting raped, so I prefer to not be in it.

Tue, 04/16/2013 - 08:51 | 3455648 LawsofPhysics
LawsofPhysics's picture

Their "clients" are some pretty big institutional investors.  Many pension plans from around the world for example.  None of the people who actually rely on these pensions probably even fucking know that Goldman is managing their future.  Ignorant fucking sheep.

Tue, 04/16/2013 - 08:54 | 3455659 TWSceptic
TWSceptic's picture

Government backed = safe.

Tue, 04/16/2013 - 08:09 | 3455544 azzhatter
azzhatter's picture

Little celebration going on in DC. Blankfein,Holder, Obowel Movement, Bernanke are all blowing each other

Tue, 04/16/2013 - 08:11 | 3455547 cutefarts
cutefarts's picture

what's new..

Tue, 04/16/2013 - 08:14 | 3455559 Dr. Engali
Dr. Engali's picture

I am shocked! Shocked! That the bank who has it's tentacles in central banks and governments around the world is able to eat it's "competitors" lunch like this.

Tue, 04/16/2013 - 08:39 | 3455617 NoDebt
NoDebt's picture

Hey, it's good work if you can get it.  Who wouldn't want to be part of an orgainization that does God's Work?

Tue, 04/16/2013 - 08:16 | 3455562 new game
new game's picture


club squid.


Tue, 04/16/2013 - 08:23 | 3455590 Cacete de Ouro
Cacete de Ouro's picture

If you can't beat 'em, join 'em...

Tue, 04/16/2013 - 08:17 | 3455568 disabledvet
disabledvet's picture

I see Lloyd is growing a beard.

Tue, 04/16/2013 - 08:33 | 3455600 GetZeeGold
GetZeeGold's picture



Sorta makes him look a little like Moses.

Tue, 04/16/2013 - 08:47 | 3455635 disabledvet
disabledvet's picture

"God I give you the 15 Command...ooops, nay TEN Commandments. I give you the TEN Commandments!"

Tue, 04/16/2013 - 08:20 | 3455577 new game
new game's picture

blankfiend to gathered vp's(after brief pat his own back), everybody back to work, there is money out there to steal...

Tue, 04/16/2013 - 08:21 | 3455581 tallen
tallen's picture

Goldman just got stopped out of gold now it's back over $1400.

Tue, 04/16/2013 - 08:50 | 3455649 disabledvet
disabledvet's picture

Funny how the psychology thing can be confusing. "if I tell the public one thing but do the opposite for my clients was I suppose to be...

Tue, 04/16/2013 - 08:21 | 3455584 orangegeek
orangegeek's picture

Dow falls 265 yesterday.


Dow is up 129 before the open.


And the gong show continues - more record highs on their way.

Tue, 04/16/2013 - 08:51 | 3455653 LawsofPhysics
LawsofPhysics's picture

Between the BoJ and the Fed, that 100 billion per month has to go somewhere.

Tue, 04/16/2013 - 08:26 | 3455595 new game
new game's picture

up, down and carefully front running, nice job, that was easy.

wish i new where the market was going and when it will turn and be ahead for each and every gain up or down.

oh, shit, maybe that is why i don't trade anymore...

Tue, 04/16/2013 - 08:32 | 3455599 Downtoolong
Downtoolong's picture

How did Goldman offset the secular decline in market participation by everyone else? By doing what it does best: prop trading

Because, when it’s serious you have to lie and skim from your clients.

Tue, 04/16/2013 - 08:34 | 3455603 Jim B
Jim B's picture

They are a "bank"....


How disgusting!

Tue, 04/16/2013 - 08:36 | 3455610 TheMerryPrankster
TheMerryPrankster's picture

Just doing God's work, day in, day out. Who knew God was so lucrative? Maybe its time for an LBO of God? His shares are tremendously undervalued and his kingdow would be worth more if it was split up and sold in pieces.

Somebody get me an underwriter...

Tue, 04/16/2013 - 08:36 | 3455611 thismarketisrigged
thismarketisrigged's picture

when wall st makes expectations so fucking low, every company is going to beat.


that is why earnings for now at least are the most overrated thing in the market ( i know that sounds weird because markets are supposed to trade on earnings) because they have made expectations so low, its impossible to miss pretty much.


of course with this, the overall market is somehow on there way to wiping out all of yesterdays losses, not that i am surprised or anything, its the fucking joke bernanke is.

Tue, 04/16/2013 - 08:41 | 3455614 kill switch
kill switch's picture

OT, But interesting  My Gainesville order of 500 toz delayed three weeks..




Two of the largest wholesale suppliers in the US, including Amark and CNT, who is the supplier of gold blanks to the US Mint for Gold Eagles, and is a registered COMEX depository, HAVE JUST SOLD OUT OF ALL PHYSICAL SILVER!!! 

In the face of an EPIC TSUNAMI of gold and silver sales today as the cartel hammered the price of silver down over 12%, and off $6 from Friday’s open, we have just been informed at SDBullion upon trying to place a large inventory order that BOTH AMARK & CNT ARE SOLD OUT OF EVERY LAST OUNCE OF PHYSICAL SILVER!!!

Apparently the fact that one of the largest wholesale suppliers in the US is SOLD OUT, while simultaneously the 2nd largest silver mine in the US is offline perhaps permanently is of absolutely no consequence to the paper dumping cartel bullion banks.

Bullion bank silver shorts are most likely covering in mass RIGHT NOW, and we’ll soon have the data to make the case.  Many have speculated that the bullion banks are going to switch to a net long position. There couldn’t be a better time to do just that given that at $22/oz, pretty much all existing shorts taken out before this week will be in the money.

16% of US Annual Silver Supply Just Vaporized




Tue, 04/16/2013 - 08:43 | 3455624 BurningFuld
BurningFuld's picture

They knocked the price down and then moved their money out of paper gold promises and into any contract where they can get their hands on the Physical stuff.......leaving all the bag holders with paper promises. You can bank on it.

Tue, 04/16/2013 - 08:55 | 3455662 GetZeeGold
GetZeeGold's picture



We realize the paper price has gone down.....but there's no way in hell we're gonna sell the real stuff to you for that.

Tue, 04/16/2013 - 08:39 | 3455616 rsnoble
rsnoble's picture

Leave it to "God" to fix everything.

Tue, 04/16/2013 - 08:44 | 3455625 SheepDog-One
SheepDog-One's picture

America, where the only thing that pays is crime.

Tue, 04/16/2013 - 08:48 | 3455639 RaceToTheBottom
RaceToTheBottom's picture

Good year for Goldman, bad year for Muppets....



Tue, 04/16/2013 - 08:54 | 3455664 optionsman
optionsman's picture

somebody has to do the God's work regardless of such despicabely low compensation.........well, there is always next quarter....

Tue, 04/16/2013 - 09:41 | 3455889 thismarketisrigged
thismarketisrigged's picture

was there a pomo yesterday? if not, it all makes sense why yesterday was a selloff and today we r back up.


bernanke probably printing the futures up like crazy since lastnight to ensure we recover all the losses.

Tue, 04/16/2013 - 10:40 | 3456139 venturen
venturen's picture

Wait they don't prop trade....Chris "show me the money" Dodd and Barney "please don't show me anything" Frank told me so.

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