It’s not just JPMorgan. Goldman Sachs is also trimming pay. Today’s first quarter results for the bank suggest that pay per head for Goldman’s 35,900 employees was down nearly 24% in the first three months of 2019.
Goldman spent $91k per employee in compensation costs in the first quarter of this year. This compared to $119k per head in the first quarter of 2018.
Goldman added employees whilst cutting compensation spending in Q1. Total compensation spending at the firm declined from $4.1bn in the first quarter of 2018 to $3.3bn in the first quarter of 2019, while headcount rose from 34,000 to 35,900 people.
The decline in pay per head at Goldman came during a difficult three months for the bank. As the chart below shows, Goldman’s revenues fell significantly in percentage terms across equity capital markets (ECM), debt capital markets (DCM), equities sales and trading, and fixed income currencies and commodities (FICC) sales and trading. M&A was the clear bright spot. CEO David Solomon said there was a “muted start to the year” with low levels of client activity and volatility, which were not helped by the U.S. government shutdown, U.S.-China trade disputes, and Brexit issues.
Source: eFinancial Careers