First bonus expectation news of 2018 ?
Bloomberg News reports that a big change is afoot inside Goldman Sachs - aside from the disc jockey slated to become CEO.
The company just set aside an unusually small portion of revenue to reward traders and bankers. The move is reflected in the firm’s compensation ratio, which took a surprising dive to 39% in this year’s first half, the lowest level of the past decade. Chief Financial Officer Marty Chavez attributed the drop to the firm’s emphasis on profitability. With revenue up significantly this year and the bank paying a lower tax rate, the rank and file can’t be faulted for hoping some of the spoils would come their way.
It didn’t go unnoticed. Goldman Sachs is often a trendsetter on Wall Street, and if it cuts, others might too. After the firm posted quarterly results Tuesday, analysts peppered Chavez with questions about what it’s doing with compensation, the company’s largest expense item. The bank typically makes the most generous contributions to its annual bonus pool during a year’s first half.
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