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Goldman Average Compensation Slides From $432K To "Only" $380K

Tyler Durden's picture




 

A quarter after Goldman reported the highest per employee comp since the record bonus period just after the Lehman bankruptcy, when the average employee of the firm's then 31,700 workers made $431,956, the firm which once ruled the world proudly with tentacles running every important global central bank, was forced to slash employee comp by a whopping 35%, from $3.7 billion, a comp margin of 44% in Q3 2012 and roughly the same last quarter, to a tiny $2.4 billion, or a comp margin of just 35.4%, resulting in average trailing 12 month per employee (of which it had 32,600 in Q3 2013) accrued compensation of just $380,368, the lowest since Q2 2012.

And this is why the bank-holding company that is Goldman (still waiting
for those Goldman ATMs) should have had a massive balance sheet, with
billions in distressed loans counted as perfectly performing, so like
JPM, Wells, Citi and BofA it could just take out billions in loan loss
reserves releases (or just add back three years of "non-recurring" legal charges) instead of having to impair its employees and force them to suffer the indignity of being paid just a few thousand percent above the average peasant.

But before the crying begins because the average Goldman employee makes only $380K, remember: this is average, and largely pushed lower by comp at the low-end. Those Goldman employees who make $10-20 million and more per year will hardly see a big impact in their compensation package this, or any other year. That, and of course the fact that the bulk of comp comes on line as prior year bonus pools vest in the current and future quarters.

What is notable however, is that in a quarter in which the US government unleashed hell on Jamie Dimon and JPM for countless market manipulation reasons, Goldman has, prudently, decided to keep a low profile and can now proudly point to this PR spectacle, and say just how careful and mindful of shareholder (over employee) interests the hedge fund truly is.

 

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Thu, 10/17/2013 - 08:18 | 4064406 SilverIsKing
SilverIsKing's picture

They'll just push the bonus expense into the next period.

You don't think they'll actually cut bonuses, do you?

Thu, 10/17/2013 - 08:18 | 4064407 GetZeeGold
GetZeeGold's picture

 

 

The horror......the horror.

Thu, 10/17/2013 - 08:22 | 4064419 Arius
Arius's picture

it couldnt happened to a nicer group of people ... sweet...

Thu, 10/17/2013 - 08:43 | 4064459 AlaricBalth
AlaricBalth's picture

Bud Fox, from Wall Street (1987). Living in Manahattan, adjusted for inflation.

"50 K (380K) don't get you to first base in the Big Apple, Dad, not any more. I pay 40% (49%) in taxes, I got a (annual) rent of 15,000 (60,000), I got school loans, car loans, food, park my car costs me 3 (12) bills a month. I need good suits, that's $500 ($2,000) a pop, shoes..."

 Can you spare three hundred (A thousand)? Pay you back next month, promise.

Dad reaches into his pocket, looks at his cash. It hurts. CARL (Blue Collar Guy) "...Got a 100 ($60) on me, you..."Bud acting embarrassed: "Not in here Dad... please. Later."
Thu, 10/17/2013 - 09:30 | 4064655 orez65
orez65's picture

""Bud acting embarrassed: "Not in here Dad... please. Later."

The Dad is the one that should be embarassed, to have a bankster as a son.

Fuck the little brat.

Thu, 10/17/2013 - 09:25 | 4064634 Bangin7GramRocks
Bangin7GramRocks's picture

I feel bad for them. What if some other member of the cabal starts poaching their arch-criminals? This could have an impact on future evil doings.

Thu, 10/17/2013 - 08:28 | 4064443 kridkrid
kridkrid's picture

I watched a snail crawl along the edge of a straight razor. That's my dream. That's my nightmare. Crawling, slithering, along the edge of a straight razor . . . and surviving.

Thu, 10/17/2013 - 08:36 | 4064469 negative rates
negative rates's picture

Just don't cross this line of salt.

Thu, 10/17/2013 - 08:20 | 4064409 NoWayJose
NoWayJose's picture

380K will buy a lot of algos....

Thu, 10/17/2013 - 08:21 | 4064413 prains
prains's picture

when munney is printed in a forest and falls to the ground, does it make a sound?

Thu, 10/17/2013 - 08:35 | 4064461 CaptainObvious
CaptainObvious's picture

Yes. It's the sound of a great disturbance in the Force, as if millions of voices suddenly cried out in terror and were suddenly silenced.

Thu, 10/17/2013 - 08:51 | 4064522 prains
prains's picture

....the trees.......the trees....

Thu, 10/17/2013 - 08:22 | 4064415 DCon
DCon's picture

They should give the bonus pool to Stolper to invest/gamble.

 

 

Thu, 10/17/2013 - 08:23 | 4064420 LawsofPhysics
LawsofPhysics's picture

The issue of compensation for the real value of one's labor is what this is all about.

Tell me, what product of real value do these paper-pushers create again (aside from the obvious financial "product" of mass destruction)?

Roll the motherfucking guillotines, nothing will change otherwise...

same as it ever was.

 

Thu, 10/17/2013 - 08:27 | 4064438 prains
prains's picture

your idea of compensation for real value, echoes through a pretty large and mostly empty chamber/shell of a country

Thu, 10/17/2013 - 08:36 | 4064458 LawsofPhysics
LawsofPhysics's picture

Perhaps, but at the end of the day, a whole bunch of real jobs need to actually get done.  Wait for it, humanity has been here before, those with the moxie, knowledge, and manpower to actually get shit done always do well, those with a mountain of paper promises and no common sense, not so much.  I know some of the GS folks and my impression is that the average farmer or venture capitalist eats these guys for lunch.

Thu, 10/17/2013 - 08:42 | 4064490 prains
prains's picture

when the SHTF we all know the paper pushers will be the protein confetti of the world, it's round 2 that scares me

Thu, 10/17/2013 - 08:24 | 4064424 Iam Yue2
Iam Yue2's picture

No mention of Stolper's contribution to the bottom line?

Thu, 10/17/2013 - 08:43 | 4064427 Rainman
Rainman's picture

If Squid employees get pissed off over pay cuts, they can join hundreds of other alumni who have chosen government service jobs. There they can front run with impunity...and it is all perfectly legal.

Thu, 10/17/2013 - 08:50 | 4064517 LawsofPhysics
LawsofPhysics's picture

Yes, just like John Corzine or Hank "tanks in the streets" Paulson.

Roll the motherfucking guillotines.

Nothing changes otherwise.

Thu, 10/17/2013 - 08:26 | 4064435 williambanzai7
williambanzai7's picture

Cry me a river of squid ink...

Thu, 10/17/2013 - 08:30 | 4064450 Winston Churchill
Winston Churchill's picture

No caviar in your porridge.

Oh, the humanity of it all.

Thu, 10/17/2013 - 08:35 | 4064460 venturen
venturen's picture

What to do...What to do.... Crash the market, turn printers on full blast, ramp the market, ramp gold, ramp oil, crash gold, crash oil, HFT ON, HFT OFF, Put Manchurian in place, Activate Manchurian, buy politician, make politician do bidding, steal houses, buy houses, sell houses, crash a country, buy a country...

 

All OF THE ABOVE!

 

P.S. Could have done a loan or helped a company...but no real money in being a bank.

Thu, 10/17/2013 - 08:35 | 4064464 T-roll
T-roll's picture

it's ok.  Us taxpayers will make up the difference one way or another.

Thu, 10/17/2013 - 08:36 | 4064468 pitz
pitz's picture

Should be $40k-$50k average.  Just like the average of any other fundamentally clerical role would be.  Do Goldman Sachs employees really require any intelligence greater than that of Wal-Mart employees?  Wal-Mart actually runs a business and delivers product to customers.  GS just delivers bullshit. 

Thu, 10/17/2013 - 08:39 | 4064480 firstdivision
firstdivision's picture

Welcome to SNAP bitches!

Thu, 10/17/2013 - 08:44 | 4064482 Mercury
Mercury's picture
Goldman Average Compensation Slides From $432K To "Only" $380K

 

Heavens to Betsy.

What do you think the top 31,700 people in Washington DC make, on average, directly and indirectly off their dealings with government and "public service" ??

 

Here's a hint: 10 of the 25 richest counties in the country are commuting distance from downtown DC: http://en.wikipedia.org/wiki/List_of_highest-income_counties_in_the_Unit...


Thu, 10/17/2013 - 08:41 | 4064485 hangemhigh77
hangemhigh77's picture

Hang every motherfucker that works here, right down to the fucking janitor.

Thu, 10/17/2013 - 08:46 | 4064504 Mercury
Mercury's picture

...and the day after that you'll finally be smart, rich and have your shit together.

Thu, 10/17/2013 - 08:51 | 4064520 LawsofPhysics
LawsofPhysics's picture

Moral hazard can be a bitch like that (unless of course you don't believe in real consequences for bad behavior).

Thu, 10/17/2013 - 08:57 | 4064539 Mercury
Mercury's picture

You can argue about where firms like Golman begin and government ends but at the end of the day moral hazard results from incentives created by government.

If our government had remained limited and not grown into the all-powerful, self-serving Leviathan that it is today there wouldn't be so much to buy.

Thu, 10/17/2013 - 09:00 | 4064550 LawsofPhysics
LawsofPhysics's picture

As you just admitted, GS is the government.  As you also admit, the government is the fucking problem.  Hence, I refer you to the original post and thank you for your support.

Thu, 10/17/2013 - 09:59 | 4064751 Mercury
Mercury's picture

You have it ass-backwards.

If you don't want cockroaches the smart thing to do is clean up your kitchen not start a "Down With Cockroaches!" campaign.

Thu, 10/17/2013 - 10:16 | 4064802 LawsofPhysics
LawsofPhysics's picture

No you're confused. My plan is to kill all the cockroaches in the fucking kitchen.  Boom, a clean kitchen. Grow a pair mercury.

Thu, 10/17/2013 - 11:58 | 4065233 Mercury
Mercury's picture

Good luck with that.

Thu, 10/17/2013 - 08:48 | 4064512 pitz
pitz's picture

In fairness, apparently they don't treat their IT, janitorial, or interns very well.  Apparently 'market' wages are good enough for them.  So people directly in the business lines at GS are making a heck of a lot more than just the "average".

And to top it all off, GS uses H-1B visas, which is completely unnecessary for a business that receives the sort of plurality of resumes as they receive. 

Thu, 10/17/2013 - 08:41 | 4064486 NOZZLE
NOZZLE's picture

$432K gets you a meager lifestyle in NYC. 

Thu, 10/17/2013 - 08:58 | 4064542 LawsofPhysics
LawsofPhysics's picture

Bullshit.

Thu, 10/17/2013 - 08:47 | 4064508 Yen Cross
Yen Cross's picture

    I could buy a lot of ammo(and self defense toys) with $380K.

Thu, 10/17/2013 - 08:54 | 4064532 prains
prains's picture

but how much of an Abrams Tanks will it get you, two tanks of gas?? if you really want to play with the big boys, you'll need a big toy

Thu, 10/17/2013 - 09:05 | 4064573 Caviar Emptor
Caviar Emptor's picture

Biflation Treekling up to the hallowed halls!

Thu, 10/17/2013 - 09:31 | 4064657 edifice
edifice's picture

"Main Street" got pissed because of the lavish bonuses these guys got, so they cut the bonuses and raised the base pay, to recruit talent.  Now Main Street are pissed about the base pay, so they'll cut base pay and reinstate lavish bonuses.  No one ever learns or changes.

Thu, 10/17/2013 - 10:40 | 4064916 pitz
pitz's picture

Only 'problem' is there's shitloads of talent that will work for far less than even the Goldman Sachs' average salary.  Which means that the excessive pay packages seem to be little more than a raping of the shareholders.

Thu, 10/17/2013 - 11:57 | 4065222 constantine
constantine's picture

Yes, about in line with brain surgeons... makes perfect sense.

Thu, 10/17/2013 - 12:08 | 4065230 Pairadimes
Pairadimes's picture

Poor bastards. The market will soon be flooded with lightly used late model Bentley Continental GTs. Only driven back and forth to the dry cleaners and the corporate apartment by smoking hot 22 year old secretaries.

Thu, 10/17/2013 - 12:15 | 4065295 combatsnoopy
combatsnoopy's picture

The families of deceased soldiers were stiffed on $100,000 for funeral and burial costs (I don't think we should be at war, but the boomer draft dodgers owe the deceased because a lot of people went into the military for a SURVIVAL JOB).

Meanwhile, some STUPID ASS TROLL whose worthless ass was planted in a tristate zipcode somehow nepotistically got herself in to Goldman Sachs and she thinks she's too good to go to war because she's prelaw.

NOT A FINANCE MAJOR.  NOT A STATS MAJOR.  NOT A MATH MAJOR.  NOT A CFA.  NOT A MBA.  NOT EVEN AN ECONOMICS MAJOR.  These are the majors that the pretty people brag about.

No numbers are too hard for prelaw majors as I painfullly found out.

Maybe the troops were lucky to NOT have her among their ranks.  ITs' just too bad that she was outearning them WITH PUBLIC FUNDS when the troops deserved A LOT more money than she did.  By a long shot.  Well the rest of us deserve a permanent tax holiday. 

Apparently this is how the thieves think at the Squid.  Some of them are kind of dumb, bullyish, arrogant, STUPID!   The schools in the tristate area I heard are not that great.

But this the ghetto fabulous garbage utopia that the baby boomer shits have always wanted for us.  I'm patiently waiting for big pharma to speed up the natural selection process for them. 

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