Discover your dream Career
For Recruiters

Goldman Sachs' results: Fewer people, higher profits, higher pay

Following on from Citi and JPMorgan, Goldman Sachs today announced its first quarter results. They're pretty good. As the chart below shows, Goldman outperformed its rivals in M&A and equities and fixed income sales and trading, even if it lagged a little in equity and debt capital markets. 

Get Morning Coffee  in your inbox. Sign up here.

In combination with an 18% increase in asset and wealth management revenues and a 24% increase in platform revenues, growing revenues in investment banking and markets helped drive a 28% year-on-year increase in net earnings. Goldman Sachs' return on equity hit 15.9% for the first quarter as a result. 

Suddenly David Solomon looks vindicated.  Maybe he even deserves his 24% pay rise. 

If things continue in this vein, Solomon may not be the only person getting paid more at Goldman Sachs this year: the firm is generating higher revenues and higher profits with fewer staff, and its compensation accruals reflect that.

In the first quarter of 2024, Goldman spent $103k on compensation for its average employee, up 15% on the $90k it spent in the first quarter of last year. It helps that it has 1,000 fewer people, but it also helps that compensation spending rose 12% to reflect the revenue growth.

Some people at Goldman already seem more deserving of the higher pay than others. North American revenues at the firm rose 28% year-on-year in Q1; EMEA revenues fell 3%. Revenues from debt investments fell 15%, and Goldman registered $318m of credit losses in relation to credit cards and wholesale loans.

Some people may not survive until year-end. There are signs that the firm continues to tweak headcount. Having ended December with 45,300 employees, Goldman had only 44,400 by the end of March.

 Have a confidential story, tip, or comment you’d like to share? Contact: +44 7537 182250 (SMS, Whatsapp or voicemail). Telegram: @SarahButcher. Click here to fill in our anonymous form, or email editortips@efinancialcareers.com. Signal also available.

Bear with us if you leave a comment at the bottom of this article: all our comments are moderated by human beings. Sometimes these humans might be asleep, or away from their desks, so it may take a while for your comment to appear. Eventually it will – unless it’s offensive or libelous (in which case it won’t.)

 

author-card-avatar
AUTHORSarah Butcher Global Editor

Sign up to Morning Coffee!

Coffee mug

The essential daily roundup of news and analysis read by everyone from senior bankers and traders to new recruits.

Boost your career

Find thousands of job opportunities by signing up to eFinancialCareers today.
Recommended Articles
Recommended Jobs
Caxton Associates
Associate Portfolio Manager Program - Dubai
Caxton Associates
Dubai, United Arab Emirates
Eames Consulting
Senior Business Analyst - Client Migration - Securities
Eames Consulting
London, United Kingdom
Deutsche Bank
Trader - Vice President
Deutsche Bank
New York, United States
Hunter Bond
Senior Data Modeller - XML FpML
Hunter Bond
London, United Kingdom

Sign up to Morning Coffee!

Coffee mug

The essential daily roundup of news and analysis read by everyone from senior bankers and traders to new recruits.