ONTD Political

Bloodbath at the Goldman Sachs Circus Maximus

8:27 pm - 01/20/2012
I Almost Feel Like Shedding a Tear... Almost.

Goldman Sachs Employees On Bonus Day: 'It's A Bloodbath'

Reports are creeping out that yesterday's bonus day wasn't all fun and games at America's most iconic investment bank.

Goldman's profits fell in 2011, in the final quarter alone by as much as 58 percent from the same period a year earlier. As a result, the investment bank set aside 21 percent less for compensation and benefits, according to Bloomberg News. And at least some Goldman employees had something to say.

"It's a bloodbath," a midlevel Goldman Sachs employee said in an interview with CNBC. "One girl was actually crying, I think," another Goldman employee said according to the report.

Some first-year Goldman analysts received $40,000 bonuses, and some second-year analysts received bonuses between $40,000 and $56,000, according to Dealbreaker. Business Insider notes that these bonuses can amount to half of these junior bankers' base salaries.

In fact, some Goldman Sachs bankers and traders learned that they were taking home no bonuses at all, the Wall Street Journal reports. And on top of that, the firm halved the total pay of some partners -- the company's highest-level employees -- while some traders got hit even harder.

It's not Goldman alone that's shrinking bonuses. Earlier this week Morgan Stanley, another major investment bank, limited bonuses for both junior and senior employees by capping cash bonuses at $125,000, according to the Wall Street Journal. Credit Suisse is also likely to no longer give junior bankers automatic pay jumps, according to Bloomberg News.

But Goldman employees worrying about bonuses haven't gotten the shortest end of the stick. The company slashed 2,400 jobs last year while setting aside an average of $367,057 in compensation per employee, 15 percent less than an average of $430,700 per employee in 2010, according to Bloomberg News.

Goldman Sachs is far from the only bank shedding staffers. Wall Street banks have already cut more than 200,000 employees.

Relative to the larger economy, of course, Goldman Sachs still pays a substantial portion of its revenue to employees, to the frustration of some shareholders, bank analyst Mike Mayo said in an interview with the NYT.

"In the tug of war between employees and shareholders, the employees are winning," Mayo said.

aviv_b 21st-Jan-2012 04:15 am (UTC)
World's smallest violin brought out especially for the poor employees of Goldman Sachs. I got a two percent raise last month - my first pay raise in four years. And you know what, I wouldn't have even been upset if I hadn't gotten a raise - I'm just glad to have a full time job with benefits that doesn't suck out my soul on a daily basis.
ericadawn16 21st-Jan-2012 05:00 am (UTC)
I got a raise this month!

Thirty cents!

Do you know why? Minimum wage went up!
qable 21st-Jan-2012 04:59 am (UTC)
On one hand, I want to roll my eyes at the itty bitty bonuses those poor widdle investment bankers received. On the other hand, nice work with the job creation, there. 200,000 employees, really?
qable 21st-Jan-2012 05:06 am (UTC)
capping cash bonuses at $125,000

If they don't want that pittance, I'll be glad to take it off their hands. That's an absurdly high amount of money for a bonus.
jwaneeta 21st-Jan-2012 05:10 am (UTC)
I sure hate it for ya, ya fuckin' parasites. *weeps*
vaegue 21st-Jan-2012 05:17 am (UTC)
To put it in perspective - some of these employees, the junior ones especially, work up to 100 hour weeks. If you break that down to an hourly rate, the pay isn't all that extravagant.

Obviously, if you compare it to a supermarket shelf stacker, or someone with long-term unemployment, these bankers are lucky and privileged. But from another perspective, these people may be paid very well, but they still can't control important factors like job stability or career progression, or the wellbeing of their industry, or their firm's culture.

Especially in this kind of comm, it's probably hard to digest these details. I guess knowing these kind of payrates is educational?
windy_lea 21st-Jan-2012 07:44 am (UTC)
Especially in this kind of comm, it's probably hard to digest these details.

That's not condescending ~at all~. We're perfectly capable of "digesting" the factors you've brought up, but I, for one, don't give half the shit about the wellbeing of their industry that I do about the first point of your second paragraph: they're privelaged.
kyra_neko_rei 21st-Jan-2012 05:42 am (UTC)
Is this the Onion, or did someone really and truly call it a "bloodbath" when their bonuses are only double the US median household income?

Because bloodbaths kinda generally require some actual blood.
bushy_brow 21st-Jan-2012 06:27 am (UTC)
The hopeful part of me is thinking that maybe, just MAYBE, this will finally open some people's eyes to how trickle down economics just doesn't work.

...But then the cynical part of me says, "Nah!"
anjak_j 21st-Jan-2012 07:00 am (UTC)
I might actually care about these whining assholes at Goldman Sachs if the company they work for didn't owe the British taxpayers what could be between £5m and £20m from a shortfall related to their tax payments.

And crying because your bonus was only $40,000 - I'm pretty fucking sure there are plenty of people in the US who would: a. cry with joy to have an annual wage of $40K, and b. happily take these junior bankers' jobs if earning $80K before bonuses is such a fucking hardship.

Edited at 2012-01-21 08:46 am (UTC)
(no subject) - Anonymous
rebness 21st-Jan-2012 03:08 pm (UTC)
sleeky 21st-Jan-2012 08:39 am (UTC)
I am reading an article about people getting laid off and small bonuses and I have no idea what their job even is but it still sounds like the best job ever. Half your paycheck? Omg, if I got a bonus of half my pay check from one month I would be so excited.
evilgmbethy 21st-Jan-2012 10:08 am (UTC)
yeah don't curr. they're in an industry which is basically parasitic on the entire economy. cry moar, have a bowl of QQ stew, etc
castalianspring 21st-Jan-2012 01:50 pm (UTC)
I have no sympathy at all for people who get more in an oh-so-small! bonus than I and many many others do in an entire year.
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