Goldman Sachs was not kidding when it began telling employees earlier this year that pay would be "modest."
Several employees who were promoted during their annual review this year told NetNet that they were warned on bonuses. Many believed that this was an attempt by Goldman to manage their expectations.
But when Goldman announced its full year results Wednesday morning, it revealed that average compensation had dropped by more than 14 percent from last year, to "just" $498,246 per employee (according to a calculation by Dow Jones). Total compensation dropped a by a smaller amount—just 5 percent—to $15.38 billion.
Goldman, which used to regularly pay out nearly 50 percent of its revenues in compensation, said that this year the compensation level was just 39.3 percent.
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