Goldman Sachs (GS) is denying that report from The Guardian that it’s already gearing up to pay record bonuses.
NY Daily News:”We won’t know what our compensation benefit number is until the end of the fourth quarter, which is at the end of December,” company spokesman Ed Canaday said.
Reports that Goldman bankers were planning to pay themselves the biggest bonuses ever in the firm’s 140-year history are “pure speculation,” Canaday said.
Fair enough. While compensation discussions are no doubt under way (at least in a general sense), it is still early in the year. Jim Cramer said the same thing last night, that the paper’s report made no sense.
On the other hand, why wouldn’t compensation be huge this year? If things continue as they’ve been going, Goldman will probably have a monstrously profitable year in trading and the credit markets. Is there any sign that the bank has dramatically altered its compensation so that more money will go to shareholders than employees? No.
Sure, more of it will be locked up in some way or another, but the reality is that if Goldman has a monster year, its employees will get boffo pay.