GOLDMAN Sachs reassured investors last night that it is doing everything it can to keep costs in control, cutting pay relative to earnings to keep shareholders happy through the downturn.
The giant investment bank wrote in its annual report that it has cut headcount by nine per cent in the last 18 months, while controlling bonus levels.
“For example, in 2011, our net revenues were down 26 per cent. As a result, our compensation and benefits expenses were down 21 per cent,” the bank said. “In 2012, net revenues rose 19 per cent from the previous year and compensation and benefits expenses increased by six per cent.”
Those measures have brought the compensation ratio down to an average of 39 per cent in each of the last four years, more than six percentage points below the ratio seen in the four years before.