The FT is out with a different version of a story we’ve read already several times this year: Pay at Goldman Sachs (GS) is going to be huge.
Every time some publication writes this story, the bank is compelled to make comments about how it isn’t true, and how they don’t decide comp until the end of the year — although they do give an estimate of how much compensation was accrued at the end of each quarter, so the bank is being somewhat disingenuous.
The only difference this time is that the piece reminds us how much the top honchos are going to make:
The firm set aside $6.6bn for compensation. It has earmarked $11.4bn for compensation for the first six months of the year. If Goldman’s second-half earnings stay on track, it would pay out an average of $770,000 to each of its 29,400 employees.
But in reality, if Goldman continues at its current pace, top executives stand to make tens of millions in bonuses, as was the case in 2006 and 2007.
Man, and we thought bonuses last year were going to raise a ruckus — but the few that were paid out were drowned down in all the other news.
But if Lloyd Blankfein makes $30 million and plunks down for a new homes, all hell will break lose. Don’t expect the public to care much whether it’s all in stock, or some kind of locked-up format.
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