In this mornings’ earnings release, Goldman Sachs announced that compensation expenses fell 21% to $12.22 billion in 2011.
With 33,000 reported employees, that works out to $370,303 per employee.
In 2010, the firm paid out $15.38 billion to employees in salary and bonuses.
While a decrease was expected, the 21% fall was less than the drop in revenues and earnings that Goldman saw in 2011.
Net revenues declined 26% from 2010 to 2011 and earnings per share fell 67%.
This discrepancy is significant, particularly at the firm that has come to be seen as a poster child for Wall Street’s misguided pay practices.
It is also out of step wth Morgan Stanley’s recent announcement that it would cap cash payment to employees at $125,000 in 2011, with significant portions of pay provided in stock and additional cash payments deferred to 2012 and 2013.