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Goldman Misses Top Line, Beats EPS On Comp Cut, Pays Average Employee $367,057 In 2011

Tyler Durden's picture




 

Cutting down to the chase on Goldman's numbers, the top line was weak, with the company reporting $6.05 billion in total Q4 revenue on expectations of $6.39 billion. The primary reason was a decline in all segments Year over Year with Investment Banking tumbling 43% to $863 Million, Institutional Client Sales down 16% to $3.1 billion, Investment Management down 16% (great work Jim O'Neill) to $1.3 billion, and finally Goldman Prop, or as it is politically correctly now known, Investing and Lending, down 56% to just $872 million, although much better than the massive Q3 loss of $2.5 billion. All this was offset by compensation benefits of $2.2 billion, which resulted in a Q4 Compensation Margin of 36.5%, down from the 44.5% average previously in 2011. As a reminder, back in Q4 2009, Goldman had negative compensation expense of $519 million to make its EPS. The result was total comp of $12.2 billion in 2011, or 42.4% compensation payoff, compared to $15.4 billion in 2010. Yet since the company let the axe fly, cutting total staff from 35,700 at December 31, 2010 to 33,300 at year end 2011, or the lowest since Q1 2010, average trailing 12 month compensation per employee rose to $367,057.06, also known as "not much" for Mitt Romney.

Summarized this looks as follows:

Yet probably most important is that average VaR in Q4 rose from $102 to $135 sequentially, primarily on a spike in Interest Rate VaR. Is Goldman pulling a FRBNY LLC and going all in on even more rate contraction?

Full results here.

 

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Wed, 01/18/2012 - 09:12 | 2073887 GeneMarchbanks
GeneMarchbanks's picture

This'll carry on until, I believe, God's work is no longer profitable.

Wed, 01/18/2012 - 09:36 | 2073934 duo
duo's picture

front-running trades from pension funds is easy money, until all the pension funds are gone.

Wed, 01/18/2012 - 09:51 | 2073976 Stax Edwards
Stax Edwards's picture

Cue top GS eCONomist with dire predictions of financial armegeddon if the FED doesn't immediately proceed with LSAP.  

GS and the rest of the TBTF fraud operations are no longer functioning correctly now that they have succeeded in robbing both the populace and the GSE's of all their funds.  Economist somehow believe that shoveling more money their way will solve the problem.  Same confounded economist cannot understand why Americans no longer wish to borrow from these parasites.

Same GD eCONomists say that what has gone on in the economy (paying down debt while interest rates are so low) goes against everything they were ever taught (proving they are masters of junk science).  Next breath, same idiot eCONomists say they have the answer, it is more debt.  I am beginning to side with TD on this, we are doomed.  Reggie is so correct when he says the root of this issue lies in our education system.  They have been taught what to think not how to think.  The Richard Koo essay really set me off, that is the definition of Hubris.  These guys are idiots.  Until they figure out that life is not perfect and government nor economist can make it so, we are doomed. 

You know why nothing works like it "should"?  Because the fabric of this GD country has been ripped to shreds by these shysters.  And our government is in collusion with them to the point that they will not prosecute their crimes.  

You want to know what Joe six pack wants?  He wants justice, guillotines, perp walks, life sentences.  He wants the next bailout to cover his balance sheet or no bailouts at all.  Joe six wants these parasites run the hell out of dodge.  Based on the numbers out of these banks, we are well on our way to acheiving this goal.  Just reinstate mark to market and buy these assholes one way tickets out of town.  Problem solved, justice restores the American peoples view of our country.  They might actually believe in America again.  That is what these bozo economist cannot get through their thick skulls.

OK, (steps down from soapbox) I feel better now.

Wed, 01/18/2012 - 09:58 | 2074000 Stax Edwards
Stax Edwards's picture

Watch ONeill's latest interview on Bloomberg where he says that running things China's way is so much easier and that democracy is much more difficult. That alone tells your where these guys intentions lie.  The day of reckoning is approaching for these guys.  Keep pushing TD!

Wed, 01/18/2012 - 13:42 | 2074865 resurger
resurger's picture

Yup

Wed, 01/18/2012 - 09:13 | 2073890 justanothernerd
justanothernerd's picture

I guess God's work isn't as profitable anymore...

Wed, 01/18/2012 - 10:11 | 2074039 knukles
knukles's picture

But, but, but, Lloyd's secretary pays a higher tax rate than I do.  She earns 10 fucking times if she's at average VampirePay too, but that's another story for another People's Court with Judge Judy..

Wed, 01/18/2012 - 10:40 | 2074130 Hephasteus
Hephasteus's picture

Na it'll be played out in chosen peoples court.

Soon as that Operation Prophecy shoots down that temple. And Operation Austerity. Get's middle east to attack Europe because those bitches owe jews money or something.

http://www.youtube.com/watch?v=3cjIoNU4PSM

Wed, 01/18/2012 - 10:42 | 2074141 StormShadow
StormShadow's picture

Seriously, $367K+ average compensation?  So do the secretaries make a $100K pittance?  Sign me up, I can type 90wpm and I have kneepads.

Wed, 01/18/2012 - 09:13 | 2073894 michaelsmith_9
michaelsmith_9's picture

A miss for Goldman is an indicator that the markets may have another rough stretch ahead. The markets are on borrowed time as many indexes and currencies are at very important inflection points, which could set the tone for the rest of the year.  Here is a look at the SPX, TNX, HG, CL, and AUDUSD. These are some very important charts. bit.ly/AlRxjr

Wed, 01/18/2012 - 09:36 | 2073937 francis_sawyer
francis_sawyer's picture

The markets are on borrowed time as many indexes and currencies are at very important inflection points, which could set the tone for the rest of the year.

Naw... we still have the "January Effect & the "Superbowl Index" to tell us where markets are going...

Wed, 01/18/2012 - 10:00 | 2074012 Roy T
Roy T's picture

 

What do you mean a miss for Goldman?  Steve Leisman said it was a big beat.

Wed, 01/18/2012 - 10:12 | 2074045 knukles
knukles's picture

The only thing Stevie knows how to beat...

Wed, 01/18/2012 - 09:14 | 2073895 Yes_Questions
Yes_Questions's picture

 

 

Screwing People, my friends.

Wed, 01/18/2012 - 09:17 | 2073900 fonzannoon
fonzannoon's picture

I bet every time they miss they actually eat a low producer in some weird ceremony.

Wed, 01/18/2012 - 09:19 | 2073904 fonzannoon
fonzannoon's picture

"Come in Todd....sit down....I think you know why you are here"

Wed, 01/18/2012 - 09:23 | 2073907 The Axe
The Axe's picture

Goldman's quarter blows moose dick, one  Every metric...of course it will go up..ha ha   the new CNBC Jan. term....factored in.....bullshit....The entire industry is in a deep recession..

Wed, 01/18/2012 - 09:28 | 2073910 firstdivision
firstdivision's picture

Seems they reduced their exposure in equities, yet increased in bonds.  Does Goldman know something?

Oil is going ape shit today.  Guess it didn't get the memo on demand falling, EU in a recession, China property falling, and that the US is slowing.  All oil seems to hear is "Iran Sanctions".

Wed, 01/18/2012 - 09:38 | 2073944 francis_sawyer
francis_sawyer's picture

Is the pope a bear who shits in the woods?

Wed, 01/18/2012 - 09:24 | 2073913 LongSoupLine
LongSoupLine's picture

annnddd, it's gone.  Goldman up premarket.  More horseshit!

Wed, 01/18/2012 - 09:25 | 2073914 barroter
barroter's picture

In America, we reward FAILURE.

Wed, 01/18/2012 - 09:25 | 2073915 fonzannoon
fonzannoon's picture

By Q4 they will be down to Fred Goldman and Wally Sachs. Avg comp per employee 650 billion.

Wed, 01/18/2012 - 09:43 | 2073947 francis_sawyer
francis_sawyer's picture

Does that mean Eddie Haskell & Wally Cleaver are out?

(speaking of which... I'm surprised nobody around here has an eddie haskell avatar... Last chance... going in 5...4...3...2... I wan't royalties... paid in silver)...

Wed, 01/18/2012 - 09:29 | 2073922 justanothernerd
justanothernerd's picture

Let us pray:

Our chairman who art at Goldman
Blankfein be thy name
Thy rally’s come, God’s work be done
In the Dow as it is in the Nasdaq
Give us this day our daily gain
And forgive us our frontruning, as we punish those who frontrun against us
And bring us not under indictment
But deliver us from regulators
For thine is the cashflow, and the power, and the bonuses, forever and ever. Amen

Wed, 01/18/2012 - 09:31 | 2073927 fonzannoon
fonzannoon's picture

wow impressive.

Wed, 01/18/2012 - 09:41 | 2073951 KondaU
KondaU's picture

Niiiiice

Wed, 01/18/2012 - 09:44 | 2073958 Oliver Jones
Oliver Jones's picture

Send that to Ann Barnhardt.

Wed, 01/18/2012 - 09:47 | 2073969 mayhem_korner
mayhem_korner's picture

 

 

9.975.

Will you be doing the Apostles' Creed for your long program?

Wed, 01/18/2012 - 10:21 | 2074065 VanillAnalyst
VanillAnalyst's picture

Nice. Having that blown up to poster board size and hung in my office.

Wed, 01/18/2012 - 09:37 | 2073938 Tense INDIAN
Tense INDIAN's picture

check out this new ad... from NIKE...Illuminati symbolism  all over it ...funny ...success for the successful...

 

http://www.youtube.com/watch?v=_MwwHJXLjg4&feature=player_embedded#!

Wed, 01/18/2012 - 13:41 | 2074858 resurger
resurger's picture

FUCK! We will flip this fucking Pyramid one day!

Wed, 01/18/2012 - 09:41 | 2073954 Max Cynical
Max Cynical's picture

Why any investor would want to own GS when the majority of shareholder profits are paid out to the employees is beyond me.

Wed, 01/18/2012 - 09:44 | 2073960 francis_sawyer
francis_sawyer's picture

ask yourself how much 'employee compensation' is paid out in shares...

Wed, 01/18/2012 - 09:45 | 2073962 mayhem_korner
mayhem_korner's picture

 

 

Importantly, though, did the $367,057 meet the top line expectations of the employees?  Prolly not for the 2,400 pink-slipped in 2011, but I just hope the rest are not on suicide watch.

Wed, 01/18/2012 - 11:35 | 2074299 Widowmaker
Widowmaker's picture

I hope they are not on suicide watch either.

Self-termination for those fraud fucks can't come soon enough.

Wed, 01/18/2012 - 09:47 | 2073970 fonzannoon
fonzannoon's picture

I may go ask for Bernak's autograph if this keeps up in the US. 15 trillion in debt. Strong dollar. Strong stock market. Prices evidently dropping. I mean holy crap does this blow anyone elses mind?

Wed, 01/18/2012 - 09:56 | 2073995 mayhem_korner
mayhem_korner's picture

 

 

Patience.  It's like the scene in Force 10 From Navarone when the charges go off in the dam. 

BTW...you can get a Timmay autograph on one of them strong dollars.  :D

Wed, 01/18/2012 - 11:25 | 2074145 Widowmaker
Widowmaker's picture

What do they make again? Campaign contributions.

How does the taxpayer treasury taste to masters of fraud and TBTF coddling... About 10x the working stiff, and he pays their taxes and bonuses, if hes got a job that isn't gov incorporated.

Goldman sadists is textbook definition of a government abortion of capitalism.

The fact is if you took away privilege and the purse these motherfucking "masters" would be unemployeed and homeless -- an insult to the homeless.

How many deposits do they have after 3 years? 

"Mr. President, Lloyd's pussy hurts again."

"Timmy, rub some more treasury cream on it, no one will see it coming."

Enjoy those bonuses, may they come with hell and every bad thing that happens to you pathetic government cheese-eating fucks.

Wed, 01/18/2012 - 11:24 | 2074243 RockyRacoon
RockyRacoon's picture

Average Goldman pay is $367,057.   So the secretary who makes $35,000 is on the low end.  Wonder who is getting the left over $332,057 of the "average"?

Edit:  I see that StormShadow above gives a bit more pay to the secretaries.  I guess that would be the case in NYC since shit costs so much more there.  Here in the hills of Arkansas it's cheaper to live.  Our secretaries make a lot less than the $35K I attributed to the NYC types.  Such is life.

Wed, 01/18/2012 - 11:25 | 2074252 loveyajimbo
loveyajimbo's picture

Does Lloyd the 'roid ever walk the streets?  Many people want to throw this tumor a large beating... The most hated man-turd in the USA?  Wasn't he in some Nazi propaganda films costarring rats?

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