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Goldman does less well than expected, pays less than expected, gives less than expected to charity
15 October 2009
Needless to say, Goldman’s third quarter results were good, but they weren’t that good.
Quarter on quarter, revenues are down just about everywhere except asset management. M&A is dire, commodities and FX are down on 3Q08 and clearly past their peak, and equities commissions are being squeezed until they squeak.
Needless to say, Goldman is paying very well (hence a rush of headlines about bumper bonuses), but it’s not paying as well as it might have done.
The comp ratio fell to 43% in the last quarter, leaving Goldman bankers with an average $527k for the first nine months. If the ratio had remained at the traditional 48% level, the average Goldmanite would be on track for $545k. And were it not for the fact that Goldman actually added 500 people in the last quarter, Goldman man would have got $554k.
Despite collectively paying its employees nearly $600k less than expected in Q3, Goldman also doesn’t appear to be being as benevolent as anticipated. Yesterday, speculation was that it would be giving $1bn to charity to assuage its bonus guilt. In fact, it’s giving $200m.
is the new goldman sucks
dd 15 Oct 2009
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