As Goldman Sachs reported a surprisingly strong third-quarter, the financial giant sent Wall Street bonus envy into overdrive saying its compensation was headed to a 19 percent jump from last year’s historically fat paychecks.
Goldman said it had so far set aside the lion’s share of $13.9 billion for bonuses – 19 percent ahead of last year’s pace – through Aug. 25, which is the end of its fiscal third quarter.
That amounts to a cool $542,000 in compensation for each one of its 25,647 employees.
The bonus preview came within an earnings release that surprised analysts for being stronger than anticipated.
Posting net income of $1.59 billion, Goldman generated revenue of $7.46 billion – $290 million higher than analysts predicted.
Traders reacted by sending the stock up 4.8 percent, or $7.29, to $158.29 in New York Stock Exchange action.
But before Goldman’s legions of 22-year-old junior analysts, clerks and secretaries start dreaming of Mercedes, they should heed the warning of its senior executives, who took pains to point out that the loot is not going to be parceled out democratically.
“Everyone will share and get more than last year,” said a partner in Goldman’s bond division, “but the big money is likely going to wind up in fixed-income, currency, and commodities.”
The partner told The Post that he would not be “guiding down,” or lowering bond traders’ bonus expectations this year.
“We earned more than we were expected to . . . management will write checks without concern.”
The fixed-income division reported more than $2 billion in sales.
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Goldman Sachs – Close: $158.29 (+7.29)