Goldman Sachs has announced a 17 percent increase in banker pay and bonuses after reporting profits in dealmaking.<\/p>\n\n\n\n
The firm spent $4.2 billion on compensation and benefits for its 45,300 employees three months before June.<\/p>\n\n\n\n
It\u2019s an almost 20 percent increase from the same period last year. <\/p>\n\n\n\n
This expenditure covers salaries, pensions, and allocations for year-end bonuses.<\/p>\n\n\n\n
Since January, Goldman<\/a><\/strong> has allocated $8.8 billion for staff compensation and benefits.<\/p>\n\n\n\n This reflects what the bank describes as \u201cimproved operating performance.\u201d\u00a0<\/p>\n\n\n\n Financial records show Goldman\u2019s profits soared by 150 percent, reaching $3 billion in the second quarter.<\/p>\n\n\n\n This was compared to $1.2 billion the previous year.<\/p>\n\n\n\n The profit increase was largely fueled by a rise in business deals, with investment bankers playing a key role in a wave of mergers and acquisitions. <\/p>\n\n\n\n Notable deals include ExxonMobil\u2019s $60 billion acquisition of Pioneer Natural Resources in May, for which Goldman acted as a broker alongside Morgan Stanley and Citigroup.<\/p>\n\n\n\n Goldman\u2019s chairman<\/a><\/strong> and CEO, David Solomon, said: \u201cWe are pleased with our solid second-quarter results and our overall performance in the first half of the year, reflecting strong year-on-year growth in both global banking and markets and asset and wealth management.\u201d<\/p>\n\n\n\n Investment banking<\/a><\/strong> is recovering from a two-year decline in dealmaking due to high borrowing rates and economic uncertainty. <\/p>\n\n\n\n The improved economic outlook and expectations of interest rate cuts by the Bank of England and the US Federal Reserve have increased demand for services from banks like Goldman Sachs.<\/p>\n\n\n\n Need Career Advice? <\/strong>Get employment skills advice at all levels of your career<\/strong><\/a><\/p>\n\n\n\n This trend is expected to result in larger bonuses, particularly for Goldman\u2019s 6,000 UK employees.<\/p>\n\n\n\n They are no longer restricted by the banker bonus cap that previously limited bonuses to twice an individual\u2019s salary. <\/p>\n\n\n\n The UK bonus cap was part of post-2007-08 financial crisis reforms aimed at curbing the bonus culture that prioritized short-term profits over long-term stability. <\/p>\n\n\n\n Despite its recent general election victory, the current Labor party has no plans to reinstate this cap.<\/p>\n\n\n\n Richard Gnodde, CEO of Goldman Sachs International, announced changes to the bank\u2019s pay structure in May.<\/p>\n\n\n\n It allowed hundreds of top earners to receive bonuses up to 25 times their salaries.<\/p>\n\n\n\n Follow us on <\/strong>YouTube<\/strong><\/a>, <\/strong>X<\/strong><\/a>, <\/strong>LinkedIn<\/strong><\/a>, and <\/strong>Facebook<\/strong><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Goldman Sachs has announced a 17 percent increase in banker pay and bonuses after reporting profits in dealmaking.<\/p>\n","protected":false},"author":5,"featured_media":43972,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[3,415,1065,1372],"tags":[],"class_list":["post-62665","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-uk-employment-news","category-us-business-news","category-us-employment-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.whatjobs.com\/news\/wp-json\/wp\/v2\/posts\/62665","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.whatjobs.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.whatjobs.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.whatjobs.com\/news\/wp-json\/wp\/v2\/users\/5"}],"replies":[{"embeddable":true,"href":"https:\/\/www.whatjobs.com\/news\/wp-json\/wp\/v2\/comments?post=62665"}],"version-history":[{"count":0,"href":"https:\/\/www.whatjobs.com\/news\/wp-json\/wp\/v2\/posts\/62665\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.whatjobs.com\/news\/wp-json\/wp\/v2\/media\/43972"}],"wp:attachment":[{"href":"https:\/\/www.whatjobs.com\/news\/wp-json\/wp\/v2\/media?parent=62665"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.whatjobs.com\/news\/wp-json\/wp\/v2\/categories?post=62665"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.whatjobs.com\/news\/wp-json\/wp\/v2\/tags?post=62665"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}\u201cWe are pleased with our solid second-quarter results and our overall performance in the first half of the year, reflecting strong year-on-year growth in both global banking and markets and asset and wealth management\u201d<\/h3>\n\n\n\n