By Agency reporter

Friday, 21 Jan 2011

NEW YORK: Financial results from United States investment bank, Goldman Sachs has revealed that an average employee was paid £269,000 last year, despite a slump in profits.

According to Sky News on Thursday, the figure represents both salary and bonuses and is £37,000 – around 12 per cent – lower in 2009.

However, net profits for 2010 totalling £5.2bn were 38 per cent lower than the previous 12 months.

An equivalent decrease in pay would have meant staff took home just under £190,000 on average.

Net profits for the final quarter were £1.4bn, while the total remuneration pot for last year stood at £9.6bn.

Goldman Sachs is the third major player to report so far in the US bank reporting season.

JP Morgan announced a 48 per cent boost to profits in 2010, before Citigroup followed with a dismal announcement which led to stock dropping seven per cent.

Goldman Sachs is one of nine US banks to have received a cash bailout from the US taxpayer.

The news comes as the argument over bankers’ bonuses rages on in both the United Kingdom and the US.

The public have been frustrated at the size of bonus payouts, while the banks argue they will lose their best staff to rivals if they are not sufficiently rewarded.

Reacting to the figures, TUC General Secretary, Mr. Brendan Barber said, “Goldman Sachs has stuck two fingers up to austerity Britain by shelling out mega bonuses again. “These earnings would make Gordon Gekko blush.

“Bankers are toasting their telephone-digit bonuses while the rest of the country reels from more than a fifth of young people being out of work.

“Looking ahead, we are seeing signs of growth and more economic activity and we are well-positioned to help our clients expand their businesses, manage their risks and invest in the future.”

Meanwhile, the Wall Street firm, Goldman Sachs, has reported net income of $2.39bn (£1.49bn) for the fourth quarter of 2010, down 53 per cent from a year ago.

The poor result was expected, following weak numbers from Citigroup on Tuesday, according to a BBC report on Thursday.

Citigroup’s performance was dragged down by weak business at its bonds, currency and commodities trading division.

Total profits for the year as a whole were $8.4bn, down 38 per cent on 2009. Yet total pay was down a mere five per cent.

The Wall Street firm paid out $15.4bn in “compensation and benefits” according to its financial statement. This was considerably more than the net earnings left over for the broker-dealer’s shareholders.

The figures mean that average pay per employee works out at $431,000, although the company’s top earners are likely to be paid several times this amount.

“The ratio of compensation to revenues has risen from 36 per cent to 39 per cent. Which some will see as the bankers doing considerably better out of the firm than the

Source: Punch