Goldman Sachs employees are expressing frustration over receiving lower-than-expected bonuses, despite the bank’s strong earnings and CEO David Solomon’s significant pay raise. The discontent among staff members was evident after the internal announcement of year-end payouts, with many feeling that their bonuses were not commensurate with the bank’s successful dealmaking in the previous year.
One veteran banker, who chose to remain anonymous, shared that their typical bonuses at Goldman had been 50% or more of their base salary in previous years, but this time the payout fell far short of expectations. The disparity in compensation became more glaring when it was revealed that CEO David Solomon received a $39 million payout for 2024, marking a 26% increase from the previous year.
The news of Solomon’s hefty bonus did not sit well with many employees, with some equities traders pointing out that the generous payouts to top leadership came at the expense of the rank-and-file staff. The $80 million golden handcuffs bonus promised to Solomon if he remains with the bank for another five years also drew ire from employees, especially when compared to the compensation packages of other Wall Street CEOs like Jamie Dimon of JPMorgan.
The discontent within Goldman Sachs reached a boiling point when some employees reportedly left work early to protest the perceived inadequate bonuses. Staff members speculated that the reduction in compensation for employees was a strategic move by leadership to bolster the bank’s financial performance.
While a Goldman Sachs spokesperson emphasized that the bank operates on a pay-for-performance model, employees voiced their disappointment over the apparent prioritization of external perceptions over internal morale. The backlash extended to online forums where some bankers expressed dissatisfaction with their bonuses despite the bank’s record profits.
Despite the dissatisfaction among some employees, working at Goldman Sachs still holds prestige and financial rewards. The firm’s compensation ratio decreased in 2024, indicating a lower percentage of net revenues allocated to employee compensation. Entry-level bankers can expect six-figure base salaries with additional performance-related bonuses, while senior partners may receive eight-figure bonuses alongside a substantial salary.
Amidst the discontent over bonuses, some employees have found solace in celebrating with champagne, hinting at a mix of emotions within the bank. As the Wall Street community continues to navigate the complexities of compensation and performance, the debate over bonuses at Goldman Sachs reflects broader industry trends and the nuanced dynamics of working in a global investment bank.
