Skip to main content

Stellar bonus year on Wall Street

  • Story Highlights
  • Wall Street bankers are anticipating massive bonuses this year
  • Goldman Sachs paid $20.2 billion in salaries and bonuses this year
  • If shared out equally, each employee of the bank would earn $661,400
  • CEO Lloyd Blankfein's bonus is expected to be in the region of $70 million
  • Next Article in World Business »
Decrease font Decrease font
Enlarge font Enlarge font

NEW YORK (CNN) -- It's been another banner year for Goldman Sachs employees.

art.goldman.bonus.jpg

Goldman CEO Lloyd Blankfein set a record last year when his bonus was pegged at $54 million.

The venerated Wall Street bank spent $20.2 billion this year on employee salaries and bonuses, up 23 percent from $16.4 billion last year, the company said when it reported strong fourth-quarter results Tuesday.

If that were to be handed out evenly among the 30,522 employees of Goldman, that would come to about $661,400 a person. Last year, that figures came to just $621,906.

By comparison, Lehman Brothers, which reported a drop in fourth-quarter profit last week, set aside $9.5 billion for 2007 compensation, up about 10 percent from last year. Given Lehman's 28,556 employees, that would come to an average payout of about $332,600 per head.

To be sure, the riches won't be spread equally across each firm. The biggest chunks of cash are expected to go to top performers on Wall Street and executives like Goldman CEO Lloyd Blankfein.

News reports have pegged Blankfein's payout this year at about $70 million, besting the $54 million he was awarded in 2006, which was a record for a Wall Street CEO.

A Goldman spokeswoman denied those reports and said the company's board is meeting later this week to set Blankfein's bonus.

Don't Miss

  • Goldman Sachs posts healthy profit

While Blankfein is expected to take home a bumper bonus this year, his payout still pales in comparison to the top-earning hedge fund managers, some of whom earned in excess of $1 billion last year.

This year is expected to be a difficult one for many bankers and traders, given the recent market turmoil and the ongoing credit crisis. Overall, financial firms are expected to cut bonuses up to 10 percent from a year ago, according to industry projections.

advertisement

But unlike some of its rivals, which have seen their stock hammered and billions of dollars evaporate from their balance sheets, Goldman Sachs has proven to be unshakable.

Goldman's net income for the fourth quarter ended November 24 rose 2 percent to $3.22 billion, or $7.01 a share, easily topping analysts' estimates. E-mail to a friend E-mail to a friend

  • E-mail
  • Save
  • Print