Carving Up the Pie: Too Much To Go Around at Goldman

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by StockJockey
Tuesday, November 29, 2005 - 7:13 am

goldman With 2005 bonuses estimated to top $19 billion, up from $15.9 billion in 2004, there's going to be a lot of cash sloshing around the street. No where as much as Goldman Sachs, however, where senior managers have the difficult task of allocating what is likely to be an $11 billion bonus pool. While this comes out to about $500,000 per employee, everyone knows the bonus distribution doesn't follow a normal distribution. Here's New York Magazine's best guess at where the chips will fall:
  • $1.65 billion to be divided among 250 senior managing directors for total pay packages of between about $4 million and $40 million.
  • Junior managing directors can expect betwee $1.75 million and $3 million
  • Mark McGoldrick, co-head of global proprietary investment, could be taking home $40 million or more.
  • Head of crude trading Jeffrey Frase, coming off a $25 million year in '04, could top that this year; same goes for debt trader Robert Cignarella.
  • Michael Sherwood, International co-chief, and derivatives boss Driss Ben-Brahim are both looking at $20 million-plus payouts.
    • As Wall Street veteran Andy Kessler put it, "Wall Street is just a compensation scheme. [The firms] literally exist to pay out half their revenue as compensation.” How Goldman is Carving Up the Pie [NY Magazine]
    Comments:

    Pretty amazing. Pretty amazing.

    Posted by Kster  on  12/31/1969  at  03:00 PM

    As someone who walked away from Goldman after completing the analysts program, all I can say is, “Man, am I stupid”!

    Posted by Jealous  on  12/31/1969  at  03:00 PM

    Oh man, Jealous, you really were short-sighted and STUPID!

    Posted by Miguel  on  12/31/1969  at  03:00 PM

    That’s just crazy money.

    Posted by  on  12/31/1969  at  03:00 PM

    It isn’t going to be as nice as it sounds.
    Basically, when your sources are trader monthly, your own dim recollections from 15 years ago, and some drunk and cynical md, and you spin 6 pages, you tend to make crap up.

    Posted by  on  12/31/1969  at  03:00 PM

    I work at Goldman, and know what the numbers are...at least at my level of things. The article overstated things by about 10-15%, I’d say. The distribution is uneven though, and some of those numbers are probably right for some people.

    Don’t get so excited folks. GS’s compensation isn’t radically different than any other major bank’s. In fact, at the lower grades it’s lower than the elite bank average. Everything is relative.

    Posted by  on  12/31/1969  at  03:00 PM
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