Goldman staff to split pounds 100m

GOLDMAN SACHS, the American investment bank that floated in May, will award record bonuses worth more than pounds 100m to the cream of its 2,500- strong London workforce this week.

The highest bonus payments are expected to dwarf the largest ever annual payout to a Goldman trader - pounds 6m - a few years ago.

The bonuses come on top of the share handouts of up to pounds 50m that were given to top Goldman executives, including Labour Party adviser Gavyn Davies, when the firm floated.

The bulk of the rewards will go to the corporate financiers who have advised on deals worth a record $1 trillion (pounds 624m) this year. Goldman Sachs has been retained by a number of big European companies involved in large deals, notably Vodafone, which is bidding for Germany's Mannesmann, and Deutsche Telekom, which bid unsuccessfully for Telecom Italia.

Goldman traders are also expected to enjoy huge rewards. The division has gained from a relatively calm year in the markets, which in recent years have been buffeted by volatility in Russia, the Far East and Latin America. The record level of stock markets in the US and Europe has also helped.

But it is the booming European mergers and acquisitions division at Goldman that is thought to have made the most significant contribution to the record results, which the former partnership is expected to reveal in a fortnight. Annual profits are forecast to come in at $2.25bn (pounds 1.4bn).

However, now that Goldman Sachs shares are quoted on the New York Stock Exchange, the bank will be subject to stricter disclosure rules, which will force it for the first time to reveal details of some of its highest earners. Foreign exchange traders, for example, who can earn up to $100m a year for the bank, can expect to receive bonuses worth at least 10 per cent of their profits. The proportion of profits paid to corporate financiers is even higher, because their fee-based income imposes less risk on the bank's capital.

The bonus pool available to UK employees will be dwarfed, however, by the pot shared by Goldman's Wall Street offices where the bulk of its profits are generated.

Goldman's strong performance will go some way towards quelling concern that the surrender of its partnership status would harm its profitability. The bank finally floated in May, eight months after its first attempt to sell its shares to the public was abandoned because of turbulent market conditions.

Many of the Goldman partners who earned multi-million pound windfalls from the bank's flotation will be forgiven for being blase about their bonuses.

Goldman's payouts kick off a pounds 1bn bonus season, which is expected to see many London-based employees of American investment banks become instant millionaires. Corporate financiers at Morgan Stanley, Credit Suisse First Boston and Merrill Lynch will also be generously rewarded for the enormous fees they have generated for their employers.

The size of the bonuses will highlight the perennial problem banks face in trying to prevent staff leaving once their pockets have been lined. One option is to pay a proportion of the remuneration in shares that cannot be touched for a number of years.

voicesGood for Lana Del Rey for helping kill that myth, writes Grace Dent
The Pipes and Drums of The Scottish Regiments perform during the Opening Ceremony for the Glasgow 2014 Commonwealth Games at Celtic Park on July 23, 2014 in Glasgow, Scotland.
Commonwealth GamesThe actor encouraged the one billion viewers of the event to donate to the children's charity
Arts and Entertainment
The Tour de France peloton rides over a bridge on the Grinton Moor, Yorkshire, earlier this month
Life and Style
fashion Designs are part of feminist art project by a British student
Very tasty: Vladimir Putin dining alone, perhaps sensibly
newsJohn Walsh salutes those brave souls who have, throughout history, put their knives on the line
The University of California study monitored the reaction of 36 dogs
sciencePets' range of emotions revealed
Arts and Entertainment
The nomination of 'The Wake' by Paul Kingsnorth has caused a stir
Joining forces: young British men feature in an Isis video in which they urge Islamists in the West to join them in Iraq and Syria
newsWill the young Britons fighting in Syria be allowed to return home and resume their lives?
Snoop Dogg pictured at The Hollywood Reporter Nominees' Night in February, 2013
people... says Snoop Dogg
Life and Style
food + drinkZebra meat is exotic and lean - but does it taste good?
ebookA unique anthology of reporting and analysis of a crucial period of history
Bey can do it: Beyoncé re-enacts Rosie the Riveter's pose
newsRosie the Riveter started out as an American wartime poster girl and has become a feminist pin-up. With Beyoncé channeling her look, Gillian Orr tells her story
Life and Style
Donna and Paul Wheatley at their wedding
healthShould emergency hospital weddings be made easier for the terminally ill?
Arts and Entertainment
Residents of Derby Road in Southampton oppose filming of Channel 4 documentary Immigration Street in their community
voicesSiobhan Norton on why she eventually changed her mind
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

PMO Analyst - London - Banking - £350 - £400

£350 - £400 per day: Orgtel: PMO Analyst - Banking - London - £350 -£400 per d...

Cost Reporting-MI Packs-Edinburgh-Bank-£350/day

£300 - £350 per day + competitive: Orgtel: Cost Reporting Manager - MI Packs -...

Insight Analyst – Permanent – Up to £40k – North London

£35000 - £40000 Per Annum plus 23 days holiday and pension scheme: Clearwater ...

Test Lead - London - Investment Banking

£475 - £525 per day: Orgtel: Test Lead, London, Investment Banking, Technical ...

Day In a Page

Screwing your way to the top? Good for Lana Del Rey for helping kill that myth

Screwing your way to the top?

Good for Lana Del Rey for helping kill that myth, says Grace Dent
Will the young Britons fighting in Syria be allowed to return home and resume their lives?

Will Britons fighting in Syria be able to resume their lives?

Tony Blair's Terrorism Act 2006 has made it an offence to take part in military action abroad with a "political, ideological, religious or racial motive"
Beyoncé poses as Rosie the Riveter, the wartime poster girl who became a feminist pin-up

Beyoncé poses as Rosie the Riveter

The wartime poster girl became the ultimate American symbol of female empowerment
Climate change threatens to make the antarctic fur seal extinct

Take a good look while you can

How climate change could wipe out this seal
Should emergency hospital weddings be made easier for the terminally ill?

Should emergency hospital weddings be made easier?

Some couples are allowed emergency hospital weddings, others are denied the right. Kate Hilpern reports on the growing case for a compassionate cutting of the red tape
Man Booker Prize 2014 longlist: Crowdfunded novel nominated for first time

Crowdfunded novel nominated for Booker Prize

Paul Kingsnorth's 'The Wake' is in contention for the prestigious award
Vladimir Putin employs a full-time food taster to ensure his meals aren't poisoned

Vladimir Putin employs a full-time food taster

John Walsh salutes those brave souls who have, throughout history, put their knives on the line
Tour de France effect brings Hollywood blockbusters to Yorkshire

Tour de France effect brings Hollywood blockbusters to Yorkshire

A $25m thriller starring Sam Worthington to be made in God's Own Country
The 10 best pedicure products

Feet treat: 10 best pedicure products

Bags packed and all prepped for holidays, but feet in a state? Get them flip-flop-ready with our pick of the items for a DIY treatment
Noel Fielding's 'Luxury Comedy': A land of the outright bizarre

Noel Fielding's 'Luxury Comedy'

A land of the outright bizarre
What are the worst 'Word Crimes'?

What are the worst 'Word Crimes'?

‘Weird Al’ Yankovic's latest video is an ode to good grammar. But what do The Independent’s experts think he’s missed out?
Can Secret Cinema sell 80,000 'Back to the Future' tickets?

The worst kept secret in cinema

A cult movie event aims to immerse audiences of 80,000 in ‘Back to the Future’. But has it lost its magic?
Facebook: The new hatched, matched and dispatched

The new hatched, matched and dispatched

Family events used to be marked in the personal columns. But now Facebook has usurped the ‘Births, Deaths and Marriages’ announcements
Why do we have blood types?

Are you my type?

All of us have one but probably never wondered why. Yet even now, a century after blood types were discovered, it’s a matter of debate what they’re for
Honesty box hotels: You decide how much you pay

Honesty box hotels

Five hotels in Paris now allow guests to pay only what they think their stay was worth. It seems fraught with financial risk, but the honesty policy has its benefit