Investment bankers coin big bonuses
American bank Goldman Sachs, which has a major presence in the UK investment arena in the City of London, is paying its staff worldwide more than £8bn in salaries, benefits and Christmas bonuses this year, 40% up on 2005.
The generous handout – which means staff will see an average of £320,000 as a bonus – comes on the back of a highly profitable year for the bank, with a record jump of 93% in fourth quarter profits to $3.15bn, bringing annual earnings for the year to $9.54bn.
Goldman has also reportedly asked its UK partners to contribute up to £6,000 each towards its London Christmas party this year and it has been reported that this event could cost over £65,000, getting on for a record in the UK investment world.
The bank reported that its record financial performance was due to strong trading in Asia, and several big merger and acquisition deals with which it had been involved.
However, it is not totally financial sweetness and light in the UK investment banking sector, as Goldman’s London office cleaners have recently protested about their low pay outside the bank’s Fleet Street headquarters.