Goldman Sachs to slash staff pay by 20 per cent as slump in share trading hits profits

0
51
Goldman Sachs made a £2.1bn profit in the first three months of 2019, down 20 per cent on a year earlier


Goldman Sachs to slash staff pay by 20 per cent as slump in share trading hits profits

Goldman Sachs made a £2.1bn profit in the first three months of 2019, down 20 per cent on a year earlier

Goldman Sachs has slashed staff pay by 20 per cent after it was revealed profits have dropped.

The investment bank made a £2.1billion profit in the first three months of 2019, down 20 per cent on a year earlier.

The decline was largely driven by a slump in share trading due to quieter markets, it said.

The lender slashed bonuses in a bid to boost profitability, setting aside £2.5billion for its workers, down from £3.1billion in the same period last year.

It meant the average Goldman employee was in line for £69,219 for the three months, down from £90,985 a year earlier.

The profit fall is a blow for chief executive David Solomon, who took charge in October, particularly as Wall Street rival JP Morgan made a record £7billion in the first quarter.

In response, Solomon – who produces dance music under the name DJ D-Sol – pledged to focus on new opportunities, including retail banking.

Goldman launched a consumer arm called Marcus in the US in 2016, and brought it to Britain with a top-paying savings account last year.

A strategic review of where the bank is heading will be published at the start of 2020, a year later than first planned.

Fellow US investment bank Citibank posted a 2 per cent rise in profits to £3.6billion.

 

Advertisement



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here