Figures for September are out from the ever-illuminating IMAS consulting. They show changes to the number of FSA-registered employees per bank over the past month. In September, it looks like the greatest number of staff were added at Goldman Sachs International - Goldman's London-based European business.
Goldman added 42 FSA registered people in London last month according to IMAS. It was followed by Credit Suisse Securities (34 people) and Credit Suisse International (37 people - there may be some overlap here). Merrill Lynch International added 20. RBC and RBC Europe added 15 (again, some overlap seems likely).
This is the time of year when banks register their analyst and associate hires. Many of Goldman's additions haven't been registered with the FSA before, indicating that they're new analysts. Those with experience include Javier Serrano, an associate in M&A who came from JPMorgan, and Uri Zahavi, who interned everywhere from Coller Capital to SAC Capital and William Blair before joining Goldman as an associate in the consumer and retail group.
Separately, Goldman Sachs International's annual results are available for the year to 31st December 2011. They reveal that the company increased its profits by a massive 212% in the 12 months to last September, to $2.4bn, up from $775m in the year ended December 2010.
Goldman also increased its European headcount last year - particularly in support functions areas, where 184 people were hired in the year ending last December and headcount increased 7%. In IBD, 49 people were hired last year and headcount rose 8.5%. In Institutional Client Services (sales and trading), 13 people were added - less than 1%. The ratio of front to back office staff across Goldman Sachs International is approximately 1:1. This is low compared to other banks, where the average is generally 2:1.
We've added the relevant section of the report below.
Something bad seems to have happened to pay at Goldman in London last year, however. Long renowned for paying its average London member of staff twice as much as its average employee globally, Goldman may finally have decided to address the discrepancy. Total compensation costs in London (including social security costs and pensions) fell from $5.34bn in 2010 to $1.15bn last year, with 'aggregate gross wages and salaries' taking a massive hit. Pay figures were obscured by a $1.8bn pay credit for the year ending December 2011 and a $455m charge for the year ending December 2010. .
Goldman Sachs has been reducing salaries for its London-based MDs and VPs. This may have something to do with last year's painful reduction. Nevertheless, it seems that average compensation spending per head in London was still $488k last year. Across Goldman as a whole it was $367k. Pay at Peterborough Court may have a lot further to fall.
Source: Companies House