U.S. banks cut bonuses to beef up bottom line

Wall Street banks are fast learning that one way to protect, and indeed fatten, the bottom line in an environment not conducive to business growth is deny their senior management the annual bonus windfall.

Goldman Sachs did just that in the fourth quarter, and lifted its profits to $2.8bn, their highest level in three years, reports the Financial Times.

The bank saved another $1.98 billion by slashing pay by 11% and cutting hundreds of jobs. As a result, Goldman saw its remuneration-to-revenue ratio fall to one of the lowest levels seen since it went public over 13 years ago.

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Goldman Sachs’ earnings jump to $2.8b

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.