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mtnmama
Member since 5/06 4794 total posts
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Message edited 6/4/2009 11:05:40 AM.
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Posted 12/14/06 1:53 PM  |
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dawnie
Barb-Never removing this pic!
Member since 11/05 3932 total posts
Name:
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Re: End of year bonuses-GOLDMAN SACHS!!
Posted by ChrissynRicky
I'm at JP Morgan, in the Credit Portfolio Group - working hand and hand w/the traders (revenue workers.)
Here's the way the Financial Services/Investment Banking industry works:
1. A VAST majority of the "employees" (specifically at GS) are CONSULTANTS, which means they are not entitiled to a bonus or benefits. They are also not the ones making the largest percentage of salaries.
2. The large bonuses go to those who are in revenue (profit) making cost centers - ie: traders. They are paid SIGNIFICANTLY more than the majority of the back & middle offices. So when there's (for example) 30 traders, 100 support employees, and the 30 traders get 1 million in bonuses, and the 100 support employees get 1 million - the average is very deceiving.
3. Many of the employees (not consultants) are not paid Overtime. It's a benefit to the company - as Overtime would come in signifcantly MORE than bonuses.
4. Bonuses are TAXED approximately 40-45% - the reported average by companies are BEFORE tax - again very misleading.
5. There are over 30,000 employees working for GS (using them as an example b/c of the OP) - and to say that 600K is the average is COMPLETE nonsense. When you figure there are executives making in the millions as their base, it's not so average.
6. Finally - you can't believe everything you hear.
Another person who works in the industry...this is 100% accurate...
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| Posted 12/14/06 1:53 PM |
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MrsMerlot
Unconditional Love
Member since 4/06 6005 total posts
Name:
Chrissy
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Re: End of year bonuses-GOLDMAN SACHS!!
Posted by Beth1210
Posted by ChrissynRicky
I'm at JP Morgan, in the Credit Portfolio Group - working hand and hand w/the traders (revenue workers.)
Here's the way the Financial Services/Investment Banking industry works:
1. A VAST majority of the "employees" (specifically at GS) are CONSULTANTS, which means they are not entitiled to a bonus or benefits. They are also not the ones making the largest percentage of salaries.
2. The large bonuses go to those who are in revenue (profit) making cost centers - ie: traders. They are paid SIGNIFICANTLY more than the majority of the back & middle offices. So when there's (for example) 30 traders, 100 support employees, and the 30 traders get 1 million in bonuses, and the 100 support employees get 1 million - the average is very deceiving.
3. Many of the employees (not consultants) are not paid Overtime. It's a benefit to the company - as Overtime would come in signifcantly MORE than bonuses.
4. Bonuses are TAXED approximately 40-45% - the reported average by companies are BEFORE tax - again very misleading.
5. There are over 30,000 employees working for GS (using them as an example b/c of the OP) - and to say that 600K is the average is COMPLETE nonsense. When you figure there are executives making in the millions as their base, it's not so average.
6. Finally - you can't believe everything you hear.
exactly my point- yet you said it one million times better and all in 1 post!
kind of a sensitive topic for me...I chose to go into this industrY and my friends and family go ape$hit when they see a paycheck from me compared to what they read in the "headlines".
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| Posted 12/14/06 1:54 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: End of year bonuses-GOLDMAN SACHS!!
this story got everyone talking- it was on all the news channels and it's good PR for Goldman Sachs-
they look like heros- which is so not true
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| Posted 12/14/06 1:56 PM |
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beautyq115
New Year!
Member since 5/05 13729 total posts
Name:
Me
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Re: End of year bonuses-GOLDMAN SACHS!!
I am in the wrong profession...the NYC DOC is definetely not into bonuses
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| Posted 12/14/06 2:01 PM |
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lululu
LIF Adult
Member since 7/05 9509 total posts
Name:
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Re: End of year bonuses-GOLDMAN SACHS!!
Posted by Beth1210
they look like heros- which is so not true
I'm not sure that they look like heroes. In fact, I think they are getting a lot of criticism for paying such high bonuses. Particularly because they are a public company with a responsibility to their shareholders.
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| Posted 12/14/06 2:12 PM |
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MrsMerlot
Unconditional Love
Member since 4/06 6005 total posts
Name:
Chrissy
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Re: End of year bonuses-GOLDMAN SACHS!!
Posted by lululu
Posted by Beth1210
they look like heros- which is so not true
I'm not sure that they look like heroes. In fact, I think they are getting a lot of criticism for paying such high bonuses. Particularly because they are a public company with a responsibility to their shareholders.
I also do not agree with the term hereos...
However, the bulk shareholders are also their chairpersons and executives who get a signifcant amount of those bonuses...so believe me, they are not the ones complaining.
The ones complaining are the middle & back office who support the revenue cost centers....
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| Posted 12/14/06 2:14 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: End of year bonuses-GOLDMAN SACHS!!
Posted by lululu
Posted by Beth1210
they look like heros- which is so not true
I'm not sure that they look like heroes. In fact, I think they are getting a lot of criticism for paying such high bonuses. Particularly because they are a public company with a responsibility to their shareholders.
let me repharse that- the MEDIA is making the look like heros
just read some of the posts on here- it makes people think they are great to ALL there employees b/c they are each getting $622K as a bonus
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| Posted 12/14/06 2:28 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: End of year bonuses-GOLDMAN SACHS!!
[
The ones complaining are the middle & back office who support the revenue cost centers....
the ones who do all the grunt work to make the traders look good
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| Posted 12/14/06 2:29 PM |
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sticklee
LIF Adult
Member since 8/06 2984 total posts
Name:
Stick
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Re: End of year bonuses-GOLDMAN SACHS!!
Posted by Beth1210
Posted by ChrissynRicky
5. There are over 30,000 employees working for GS (using them as an example b/c of the OP) - and to say that 600K is the average is COMPLETE nonsense. When you figure there are executives making in the millions as their base, it's not so average.
exactly my point- yet you said it one million times better and all in 1 post!
i agree with both of you. there is a BIG difference between the AVERAGE bonus and the MEDIAN bonus
when the executives are making tens of millions in bonus, it completely skews the average.
if the top guy gets $50 million and the low man gets $1, the average is $25 million. completely misleading information!!
Message edited 12/14/2006 2:33:42 PM.
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| Posted 12/14/06 2:33 PM |
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eroxgirl
My Loves
Member since 5/05 15697 total posts
Name:
Rebecca
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Re: End of year bonuses-GOLDMAN SACHS!!
Posted by Beth1210
we were joking one day and we took our starting salaries at Macy's
and divided it by the hours we work
then we took the Morgan Stanley starting salarry and divided it by the hours they worked
and us retail girls were making more an hour!
it's really sad how hard they have to work- even till 2 am on a friday night!
as my DH would say- it's blood money
I've been thinking of doing this at my firm as well. I work in a lawfirm and although starting salary for an attorney just out of lawschool is in the 6 figure range, the hours they put in are CRAZY. I wonder if I'm making "more" because of my 9-5. One day I'll sit down and figure it out. 
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| Posted 12/14/06 2:34 PM |
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jozieb0925
Double Trouble!
Member since 5/05 4358 total posts
Name:
Josie
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Re: End of year bonuses-GOLDMAN SACHS!!
I knew this had to be too good to be true..I was like Holy S h it when I first read this.. 
Message edited 12/14/2006 2:35:56 PM.
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| Posted 12/14/06 2:35 PM |
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lululu
LIF Adult
Member since 7/05 9509 total posts
Name:
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Re: End of year bonuses-GOLDMAN SACHS!!
Posted by dawnie
Posted by ChrissynRicky
I'm at JP Morgan, in the Credit Portfolio Group - working hand and hand w/the traders (revenue workers.)
Here's the way the Financial Services/Investment Banking industry works:
1. A VAST majority of the "employees" (specifically at GS) are CONSULTANTS, which means they are not entitiled to a bonus or benefits. They are also not the ones making the largest percentage of salaries.
2. The large bonuses go to those who are in revenue (profit) making cost centers - ie: traders. They are paid SIGNIFICANTLY more than the majority of the back & middle offices. So when there's (for example) 30 traders, 100 support employees, and the 30 traders get 1 million in bonuses, and the 100 support employees get 1 million - the average is very deceiving.
3. Many of the employees (not consultants) are not paid Overtime. It's a benefit to the company - as Overtime would come in signifcantly MORE than bonuses.
4. Bonuses are TAXED approximately 40-45% - the reported average by companies are BEFORE tax - again very misleading.
5. There are over 30,000 employees working for GS (using them as an example b/c of the OP) - and to say that 600K is the average is COMPLETE nonsense. When you figure there are executives making in the millions as their base, it's not so average.
6. Finally - you can't believe everything you hear.
Another person who works in the industry...this is 100% accurate...
I wasnt going to respond to this but I feel like many of your points are not accurate.
First of all - to say that the vast majority of people at GS are working on a consulting basis is not accurate. Do they use consultants? Yes, but there are far more employees than consultants.
Second, people who are deemed to be professional employees are rarely paid overtime in any industry. this is not unique to the financial services industry. Administrative assistants at goldman are, however, paid overtime, AND are entitled to a bonus (though it is no where near the $600k mark).
Third, when you get your bonus, yes it is taxed at about 45%. However, when you file your tax return, if your income bracket when taking into consideration your total comp is less than the max, you will get back what you are entitled to. Contrary to popular belief, bonuses are not really taxed any different than your regular comp. Its just that most payroll services will automatically assume that you are at the highest tax bracket possible (for city, state and local) and tax your bonus based on that.
Also, i think that people are confusing the term average. No one is saying the "average" or typical GS employee makes $600k. They are saying the average compensation package is $600k. This is because the average is calculated the way beth stated - by taking the total compensation paid out and dividing it by the number of employees that were included in that pool. It isnt saying a mid-level person at GS makes $600k.
Finally - goldman is a public company, so they have filings that do make a lot of this information public.
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| Posted 12/14/06 2:36 PM |
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Beth
The Key to your new home....
Member since 2/06 24849 total posts
Name:
Beth
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Re: End of year bonuses-GOLDMAN SACHS!!
I've been thinking of doing this at my firm as well. I work in a lawfirm and although starting salary for an attorney just out of lawschool is in the 6 figure range, the hours they put in are CRAZY. I wonder if I'm making "more" because of my 9-5. One day I'll sit down and figure it out.
if they have school loans- you probably are
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| Posted 12/14/06 2:38 PM |
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krwm
<3
Member since 7/05 3466 total posts
Name:
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Re: End of year bonuses-GOLDMAN SACHS!!
Posted by CoopersMom01
hmmmm, i wonder if they're hiring!
seriously! I got a card from a partner. That's what we get for the holidays around here 
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| Posted 12/14/06 2:45 PM |
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JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
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Re: End of year bonuses-GOLDMAN SACHS!!
WOW! it's too bad FH doesn't work for them anymore!!!
Then again he worked there as a consultant...so no bonus anyway...
That's awesome though
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| Posted 12/14/06 2:50 PM |
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itsbabytime
LIF Adult
Member since 11/05 9644 total posts
Name:
Me
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Re: End of year bonuses-GOLDMAN SACHS!!
I think a few posters have already clarified this but, the $600,000 is just an average if they paid their employees all an equal amount. I saw this on CNBC and have a close friend that is in the industry and it is a few of the top guys in their private equity group (which made BILLIONS this year) that are getting bonuses in the HUNDREDS of MILLIONS.
It is seriously insane for me to think of that much money. I mean, you could retire for life from ONE bonus!
In reality, if you work at GS and you get a bonus this will be a very merry christmas for you. BUT NOT as merry for every employee equally. I think all the press is so misleading and gives the impression that *everyone* is making this and if your bonus is not in the hundreds of thousands and you are in this industry well you are screwed - but I don't think that is the case. Although this was a very good year for Banks and I think bonuses will be on the high side across the board.
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| Posted 12/14/06 3:02 PM |
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Kate07
Feel better my little guy!
Member since 5/05 4476 total posts
Name:
Kate
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Re: End of year bonuses-GOLDMAN SACHS!!
Posted by itsbabytime
I think bonuses will be on the high side across the board.
No matter what the amount, it is supposedly a record year and it is pretty good money if you ask me. And well deserved.
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| Posted 12/14/06 3:04 PM |
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Goldi0218
My miracles!
Member since 12/05 23902 total posts
Name:
Leslie
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Re: End of year bonuses-GOLDMAN SACHS!!
One of my SIL's works for them. She does not generate profits - she is in another department. Her bonus was a significant percentage of her salary. She works crazy hours. DH could probably work in a big company with that type of compensation with his background and educational qualifications, but as he said to me, "You want to see me right?" I had to agree. I dont think it would be good for our relationship if he worked so many hours. Things may change when we have kids. We will need more money. Sadly, I am not in a business that makes money or I could bring in some serious cash.
Message edited 12/14/2006 3:06:22 PM.
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| Posted 12/14/06 3:05 PM |
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itsbabytime
LIF Adult
Member since 11/05 9644 total posts
Name:
Me
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Re: End of year bonuses-GOLDMAN SACHS!!
Posted by cpanyc
Posted by Beth1210
as my DH would say- it's blood money
My opinion exactly. As for my friend that works there, I just hope she gets out soon. She complains she has no life but is so caught up in the $$ that it is hard for her to see that is why she has no boyfriend, can't go visit her family(her vacations are always being cancelled) or do the things she wants. Life is short.
This is all true. What is even sadder is that there are MANY people working these crazy hours that are not making MILLIONS. I think that is why it gets hard to justify.
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| Posted 12/14/06 3:09 PM |
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JenniferEver
The Disney Lady
Member since 5/05 18163 total posts
Name:
Jennifer
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Re: End of year bonuses-GOLDMAN SACHS!!
I have to agree, finance s*cks. FH was working a great Wall St job at another firm, and right before bonus season they laid off a whole bunch of people in his department because they are programmers, not the money-makers and it saved them a LOT of money in bonuses by laying those people off. Basically Fh worked all year, LATE hours, overnights, you name it, and they laid him off in november, so he couldn't be rewarded for that. It stinks
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| Posted 12/14/06 3:10 PM |
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