Average Pay Of Goldman Banker Rises To $383,374 On Expectations Beat Despite Plunge In Order Flow

Tyler Durden's picture

Yesterday Bank of America beat thanks to (among other things) ye olde "plunge in the effective tax rate" gimmick which let it beat EPS by two cents instead of missing by three. Today it was Goldman's turn to "beat" lowered EPS expectations of $4.18, posting a substantial beat of $4.60. So did Goldman also fudge its tax rate? Not exactly: instead, what Goldman did was to reduce its compensation benefits from $2.4 billion to $2.2 billion, which meant the firm's compensation margin declined from 35.2% to a tiny 24.9% of revenue. Had Goldman kept the comp margin flat it would have missed EPS by about 50 cents. However, unlike the other "banks" Goldman at least did post a notable beat in GAAP revenues (it was reluctant to use a non-GAAP top line, hear that Jamie?) as well, with Q4 sales rising from $6.7 billion in Q3 to $8.8 billion, on expectations of $7.8 billion. However, compared to a year ago, the top line was 5% lower, while Net Income of $4.60 was 21% lower than a year earlier.

The reason for the decline in revenue was the plunge in Equity and FICC Institutional Client Flow, both of which tumbled by 27% and 15% respectively year over year, as more and more institutions just say no to trading. Which mean that Goldman's prop trading group had to pick up the slack and sure enough Investment and Lending, aka Prop, saw its revenue rise to $2.1 billion in the quarter, up 4.4% from a year ago and the third best quarter in post-Lehman history. Finally, Investment Banking revenues of $1.7 billion also posted a notable increase of 22.3% Y/Y as Goldman's bankers rushed at the opportunity to advise on the surge in equity and debt offerings and occasional M&A deals.

Finally, even though Q4 comp benefits of $2.2 billion did decline from Q3, it was modestly higher than a year ago, which means that the average compensation per average Goldman banker rose modestly to $383,374. Remember, though: there is no such thing as an "average" Goldman banker.

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RSloane's picture

Some tribes are more equal than others.

TeamDepends's picture

Hey, slaughtering muppets is hard work.

Oh regional Indian's picture

Haaah, I read RSloane's comment as : "Some bribes are more equal than others"...

And wall street = The tribe of Ham (Pig)


SAT 800's picture

Net income was lower than last year; must be because of the economic recovery.

GetZeeGold's picture



Thanks for the bailout guys!


America......what a country. You can screw up really bad.....and the taxpayers will still have your back.

Sudden Debt's picture

taxpayers don't have their back. Taxpayers just don't give a fuck because they believe the government will always have enough money to take care of them.

Sudden Debt's picture

I took the wrong job...

had to go for a respectable job... marketing...

and in a crisis, it's more flatering to be a pimp than a marketeer...

Son of Loki's picture

Maybe some of those 2,000 fired JCP emnployees or 2,500 layed off Macy's employees can grab a job at GS? That'd help their situation tremendously...a move up the ladder.

Dr. Engali's picture

Despite the fact that earnings are no where near 2007 this should drive GS to a new all time high. Nope no bubble here.

TheInfoman's picture

I thought these banks were tetering on the brink of insolvency.

GetZeeGold's picture



I think you're thinking about middle-class America.

Sudden Debt's picture

that was last week, they're okay this week.

Seasmoke's picture

God must very happy today. 

firstdivision's picture

Wow, only $383k/yr!  How does someone survive on such a meger wage?  They contribute so much to the world, that without them, this world wouldn't be worth living in.  Can we put more santas with bells on the streets to collect money for them?

Sudden Debt's picture

most of them also have a paper route and flip burger afterhours at McDonals to get by...


Oldwood's picture

For anyone who has ever tried to climb a tree, they know its a lot harder climbing back down. I guarantee you that the majority of these people are living farther beyond their means than someone making $35k/yr. The difference is that they have more power and will do just about anything to stay afloat. Saving a weak child from drowning is one thing but try and save a strong, athletic person and they will likely take you down with them. These guys will not walk away from this easily, especially the higher you go up the tree. They will burn down the house to stay in the game.

Oldwood's picture

Just as a point of my ignorance, what does Goldman "sell"?

"with Q4 sales rising from $6.7 billion in Q3 to $8.8 billion, on expectations of $7.8 billion"

SDRII's picture

includes 1.4B in gains on IPOs, and public equity gains


keep pumping

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