Goldman Sachs Staffers Fume Over Paltry Bonuses Despite CEO’s Massive Raise
Goldman Sachs employees are expressing anger and disappointment over their end-of-the-year bonuses, with many saying the payouts are paltry compared to the massive raise given to CEO David Solomon. The bank’s best earnings in three years, with a 67% profit increase to $14 billion, have not translated to similar gains for its employees.
According to sources within the bank, many employees believe their bonuses are significantly lower than in previous years, with some receiving only a fraction of their usual compensation. One veteran banker claimed that their bonus was only half of their usual amount, with another saying that it was “nowhere close” to what they expected.
Meanwhile, Solomon received a whopping $39 million in compensation for 2024, up 26% from the previous year. Additionally, he will receive an $80 million golden handcuffs bonus if he stays with the bank for another five years.
The disparity in compensation has led to growing frustration among employees, with many questioning the bank’s leadership and priorities. “This is a pay for performance business,” said a bank spokesperson, but many employees feel that the high earnings have not been reflected in their own compensation.
The backlash has spread to online forums, with many Goldman employees expressing their discontent. A first-year associate said they were “not happy” with their $135,000 bonus on top of a $200,000 base salary, while another banker seethed, “The bottom line for 2024 comp is this: the firm crushed it, and a lot of people who made it happen were given a cheap seat at the celebration.”
Some employees have even taken to skipping work early to protest the paltry bonuses, with two sources claiming that some staff did so on the day before Solomon’s bonus was disclosed. The company’s chief operating officer, John Waldron, also received an $80 million golden handcuffs deal.
The controversy has led some to question the bank’s leadership and priorities. “The truth is that Goldman is a best-in-class global investment bank,” said Wells Fargo’s Mike Mayo, but added, “You need to pay and promote some people, while others just earn and churn. You make your money, you cash out, and then the younger people move up.”