Goldman Sachs released some disappointing earnings numbers this morning.
In the report were details of the drop in compensation costs.
According to the report, compensation expenses — which includes salaries, bonuses and benefits — fell to $3.2 billion for the second quarter of 2011.
That represents a big 16% decline from this time last year.
Compare that to Q1 compensation costs this year, which clocked in at $5.23 billion and was only down 5% compared to Q1 2010.
Obviously, the culprit is the collapse in lucrative trading revenue, as customers retrench, and volumes go anemic.
The bank used to accrue close to 49% or 50% of its net revenue for compensation; today, the ratio is 44%.
The firm’s coterie were already ready furious about cuts to compensation for 2010 (especially compared to the stellar year of bonuses that was 2009), and that was with bonus packages being cut by only 5%.
We’re guessing there’s going to be more than a few slammed doors come bonus announcements next year…
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