With economic uncertainty gripping Wall Street, Goldman Sachs may cut bonuses for about 3,000 investment bankers, according to a recent media report.
The Financial Times published a report on Wednesday, citing a senior source at the investment firm, that CEO David Solomon is considering cutting the bonus pool by at least 40%.
The outlet previously reported that rivals JPMorgan Chase, Citigroup and Bank of America could be cut by 30%. “I think we’re going to be worse than the Street,” a senior Goldman analyst told the Financial Times.
In September, Goldman Sachs laid off 500 employees as the financial sector continued to be rocked by the economic downturn. If implemented, the bonus cuts would be the biggest since the 2008 financial crisis.
GOLDMAN SACHS warns that the “BEAR MARKET” IS NOT OVER YET AND WILL CONTINUE IN 2023.
“Compensation at Goldman Sachs is determined by the performance of the entire bank, not in each business area,” a Goldman spokesman told the FT in a statement. “The compensation process has not yet been completed, so any discussion or prediction about specific numbers is premature.
Furthermore, the report also suggests that Solomon may also seek to cut costs by cutting an additional 400 positions from the company’s retail banking division. The cuts come on the heels of continued underperformance in the investment banking sector, with JPMorgan down 47% year-over-year.
THESE BUSINESS TITANS ARE ALARMING ABOUT THE US ECONOMY.
As a sector, investment banking fees are down 35% this year, according to Refinitiv.
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