Goldman Sachs bankers on course for a 24% pay rise after pandemic sparks upsurge in trading and investments
Bankers at Goldman Sachs are on course for a 24 per cent pay rise this year, despite the pandemic.
While millions of workers in the US and the UK are fearing for their jobs, Goldman is planning to hand its 39,100 employees an average pay package of £156,293 for the first six months of this year.
Operating expenses increased ‘primarily due to significantly higher compensation and benefits expenses’, it said.
As millions of workers in the US and the UK fear for their jobs, Goldman is planning to hand its 39,100 employees an average pay package of £156,293 for the first six months of this year
But it justified the bulging pay by noting that its net revenue for the second quarter of 2020 was up 41 per cent on the same time last year, to £10.5billion – its second-best quarter on record.
The boom was driven by its investment bank, which had its best quarter ever, and its markets division, which benefited trading prompted by the pandemic.
A bond trading bonanza raked in £3.4billion.
And the equities arm bagged £2.3billion, helping to overshadow £1.3billion set aside to cover loans it expects to turn sour.
Goldman put aside money for legal costs, including the 1MDB multibillion dollar bribery scandal.
But the £751million charge it booked failed to dampen investors’ spirits.
Shares jumped more than 5 per cent before settling around 1 per cent higher.