Goldman Sachs Sets Aside Record $16.9 Billion for Pay (Update1)
By Christine Harper
Sept. 20 (Bloomberg) -- Goldman Sachs Group Inc., Wall Street's most profitable securities firm, set aside $16.9 billion to pay salaries, benefits and bonuses in the first nine months of the year, topping the record amount for all of last year.
The nine-month figure exceeds 2006's total of $16.5 billion and compares with about $14 billion for the first nine months of last year, the New York-based firm said today. The year-to-date sum equals about $565,730 per employee, up 4 percent from a year earlier.
Goldman, which paid Chief Executive Officer Lloyd Blankfein a record $54 million last year, reported today that third-quarter profit rose 79 percent, sidestepping a global credit crunch that reduced earnings at Morgan Stanley, Lehman Brothers Holdings Inc. and Bear Stearns Cos. While Lehman, Bear Stearns and Merrill Lynch & Co. have started eliminating jobs, Goldman plans to add people, Chief Financial Officer David Viniar said today.
``We are not pessimistic, we do not have a hiring freeze, we do not have a hiring slowdown,'' Viniar said. ``We think that the outlook for our businesses is pretty good.''
Successful bets that mortgage securities would drop in value, higher investment-banking fees and equity-trading gains helped Goldman's revenue climb 25 percent in the first nine months of 2007, faster than the 17 percent increase in employees.
Goldman fell $1.97 to $203.53 at 4:01 p.m. in New York Stock Exchange composite trading. The stock has gained 2.1 percent in 2007 and 22 percent in the past 12 months. The 12-member Amex Securities Broker/Dealer Index advanced 2 percent in the past year.
Wall Street firms set aside money throughout the year to pay salaries, benefits and bonuses. The bonuses, which typically account for about 60 percent of the total, are paid after the year ends. Goldman, Morgan Stanley, Lehman and Bear Stearns complete their fiscal year at the end of November.
To contact the reporter on this story: Christine Harper in New York at charper@bloomberg.net .
Last Updated: September 20, 2007 16:31 EDT
http://www.bloomberg.com/apps/news?pid=20601087&sid=adzF5fUEy.AU&refer=home
By Christine Harper
Sept. 20 (Bloomberg) -- Goldman Sachs Group Inc., Wall Street's most profitable securities firm, set aside $16.9 billion to pay salaries, benefits and bonuses in the first nine months of the year, topping the record amount for all of last year.
The nine-month figure exceeds 2006's total of $16.5 billion and compares with about $14 billion for the first nine months of last year, the New York-based firm said today. The year-to-date sum equals about $565,730 per employee, up 4 percent from a year earlier.
Goldman, which paid Chief Executive Officer Lloyd Blankfein a record $54 million last year, reported today that third-quarter profit rose 79 percent, sidestepping a global credit crunch that reduced earnings at Morgan Stanley, Lehman Brothers Holdings Inc. and Bear Stearns Cos. While Lehman, Bear Stearns and Merrill Lynch & Co. have started eliminating jobs, Goldman plans to add people, Chief Financial Officer David Viniar said today.
``We are not pessimistic, we do not have a hiring freeze, we do not have a hiring slowdown,'' Viniar said. ``We think that the outlook for our businesses is pretty good.''
Successful bets that mortgage securities would drop in value, higher investment-banking fees and equity-trading gains helped Goldman's revenue climb 25 percent in the first nine months of 2007, faster than the 17 percent increase in employees.
Goldman fell $1.97 to $203.53 at 4:01 p.m. in New York Stock Exchange composite trading. The stock has gained 2.1 percent in 2007 and 22 percent in the past 12 months. The 12-member Amex Securities Broker/Dealer Index advanced 2 percent in the past year.
Wall Street firms set aside money throughout the year to pay salaries, benefits and bonuses. The bonuses, which typically account for about 60 percent of the total, are paid after the year ends. Goldman, Morgan Stanley, Lehman and Bear Stearns complete their fiscal year at the end of November.
To contact the reporter on this story: Christine Harper in New York at charper@bloomberg.net .
Last Updated: September 20, 2007 16:31 EDT
http://www.bloomberg.com/apps/news?pid=20601087&sid=adzF5fUEy.AU&refer=home
