Goldman Sachs’s (NYSE:GS) nine-month pay cost is down 24 percent to $10 billion from about $13.1 billion. Salaries, bonuses, stock awards and benefits amounted to $292,836 per employee from $370,706 last year. The company may have to cut compensation again as declining markets sap trading revenue. The firm has allocated 44 percent of profits for pay and benefits so far this year versus 39 percent last year.
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Lower Manhattan Occupy Wall Street protests are targeting companies like Goldman Sachs, wanting to bring attention to difference between the richest 1 percent of the population and everyone else. According to a Quinnipiac University survey, sixty-seven percent of New York City voters support the movement. Will they back off with today’s lower payouts? Uh, I don’t think so.
JPMorgan Chase (NYSE:JPM) also announced that they would be cutting their workforce by close to 4 percent and employee compensation by about 28 percent. Their per employee compensation is $289,611 for 9 months.
A number of New York City’s other largest banks — Bank of America (NYSE:BAC), HSBC (NYSE:HBC), Barclays (NYSE:BCS) Credit Suisse (NYSE:CS), UBS (NYSE:UBS), Deutsche Bank (NYSE:DB), Royal Bank of Scotland (NYSE:RBS) and Lloyd’s (NYSE:LYG) — have announced plans to fire thousands of workers. Will the layoffs Shove New York City into a Major Recession?
Goldman Sach’s stock is up 1.83% to $98.68 on the news. Shares are up 2.42% year to date. The stock has traded in a 52-week range between $84.27 and $175.34.
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