but staff left in the dark as bank holds out on salary updates

David Hellier
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GOLDMAN Sachs has deferred decisions on its European-based employees’ salaries for 2014.

The bank, which normally would have told employees their new salaries alongside the announcement of its financial results, will instead communicate this towards the end of the month.

The bank has decided to change its pay structures ahead of new EU bonus rules which aim to cap bonuses as a percentage of fixed pay.

Last year Goldman Sachs paid nearly five times as much to its senior staff in bonuses as it did in annual salary.

The likelihood is the salaries of the highest paid employees will increase, to allow a change in the mix between variable and fixed pay.

The new EU rules will allow banks to pay their employees a maximum of 200 per cent of their salary in bonuses. Banks must receive shareholder approval for this. Two other banks, Bank of America Merrill Lynch and JP Morgan are also set to reveal their hand next week.

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