Goldman Sachs’ Q1 earnings report released this morning beat analysts’ estimates, but also saw declining year-over-year numbers in revenue and profits.
Another number that continues decreasing is the compensation pool, which also fell compared to last year. The decrease for this quarter, however, isn’t as drastic compared to past quarters—remember when compensation fell 59% YOY in the third quarter of 2011?
From the earnings release:
The accrual for compensation and benefits expenses (including salaries, estimated year-end discretionary compensation, amortization of equity awards and other items such as benefits) was $4.38 billion for the first quarter of 2012, a 16% decline compared with the first quarter of 2011. The ratio of compensation and benefits to net revenues for the first quarter of 2012 was 44.0%. Total staff decreased 3% compared with the end of 2011.
Still, it’s not time to feel sorry for Goldman bankers or anything. Across the board, Goldman employees are still the best paid on the street—average compensation for the banks’ employees is $367,000 per year, according to Bloomberg.