Goldman Sachs employees enraged by trivial bonuses, far cry from CEO David Solomon's $39m payout: ‘This is where…’
Goldman Sachs staffers are unhappy with their scanty bonuses, especially when compared to the 26% surge in CEO David Solomon's payday on his 63rd birthday.
Goldman Sachs employees are furious over the noticeably vast gap between their own meager bonuses and CEO David Solomon’s staggering raise. Several staffers interviewed by the New York Post are griping about where their “money went” while the bank took much pride in toasting Solomon’s 63rd birthday with a $39 million payday, marking a 26% bump from the previous year.
While requesting to maintain an air of anonymity, an equities trader slammed Goldman Sachs as a “cult” that brings its employees along for the ride “by promising us promotions or money.” The insider also divulged that general reaction to Solomon’s highly publicised bonus saw “a lot of folks” rolling their eyes while mulling over, “Of course, that is where our money went.”
Goldman Sachs employees unhappy with low bonuses despite overall soaring profits
A veteran banker explained the bonus pattern his personal salary hikes have witnessed over the years. “My typical bonuses have been 50% of base or more for all the years I have been with Goldman.” However, it was “nowhere close” this time. Two other sources revealed that anger was at an all-time high inside the 200 West Street headquarters in Lower Manhattan the day before Goldman CEO’s revised package was announced. The imminent announcement prompted workers to walk out early to protest against their paltry compensation.
Yet another insider shed light on the overall response to the staggering gap between the CEO and other employees’ payouts. “There’s a lot of frustration, anger, and disappointment. It feels demotivating when leadership seems more focused on external perceptions than internal morale,” they said. Some even attributed the low bonuses to amplifying the bank’s quarterly and annual earnings. Meanwhile, Goldman spokesperson Tony Fratto reduced the situation to a “pay for performance business.”
While the firm itself is revelling in a profits high, seeing the numbers soar to $14 billion last year (67%), internally, the bonus backlash resulted in plenty of “unhappy” faces due to “squeezing compensation.” Taking the bitter pill, employees recognised that the firm’s 2024 profits only provided them with “cheap seats at the celebration.”
Data shows overall employe compensation graph is plummeting
Wells Fargo analyst Mike Mayo’s note to the employees further divulges that Goldman’s overall compensation ratio is mapping out a downward graph, falling to 32% last year from 2023’s 35%. Hailing the bank “somewhat a microcosm of the industry,” Mayo noted, “You need to pay and promote some people, while others just earn and churn. You make your money, you cash out and then the younger people move up.”
Meanwhile, Solomon could also bag an eye-popping $80 million retention bonus if he maintains the tight hold over the top job until 2030.
