Goldman's $22 Billion Bonus Bonanza

More than anyone else, Goldman Sachs (GS) is the one financial institution for whom profits remain a big liability.

Everyone loves to mock their monster earnings and the huge bonuses the bank pays out.

The lates volley from from The Telegraph, which estimates that the bank is on track to pay $22 billion in bonuses this year, or about $700,000 per employee.

Does The Telegraph really know anything that anyone else doesn’t? Not really. They’re just estimating what the bank will earn for the year, and then crudely figuring what that translates into bonus-wise. Goldman Sachs is sure to say that it’s still several months away from allocating bonuses, which are not doled out until after Q4 is in the books.

We hope Goldman Sachs listens to our prescription for solving the bonus-image problem. They should announce that 10% of bonus money will go to charity. The employees will still get great bonuses, and the bank will get credit for the largest corporate philanthropic gift in history. Problem solved.

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