Goldman Pay Pool Expands 6% as Employee Base Shrinks

Jan. 16 (Bloomberg) -- Bloomberg's Stephanie Ruhle looks at the expected cuts to Wall Street bonuses as banks scale back compensation and announce more job cuts.

Goldman Sachs Group Inc. (GS)’s compensation expense climbed 6 percent in 2012, the first increase in three years, as revenue rose 19 percent.

The expense, which includes salaries, bonuses, benefits and deferred awards from previous years, advanced to $12.9 billion for the year from $12.2 billion in 2011, the New York-based company said today in a statement. The cost amounted to 38 percent of revenue, compared with 42 percent a year earlier.

Goldman Sachs, led by Chief Executive Officer Lloyd C. Blankfein, has sought to lower annual costs by $1.9 billion since mid-2011 as the fifth-biggest U.S. bank by assets contended with slumping revenue. The pay increase for 2012 contrasts with a 3 percent decline in the number of employees to 32,400 during the year.

The pay expense averages $399,506 per employee, up from $367,057 in 2011. The average compensation figures are derived by dividing the compensation pool by the number of employees and don’t reflect actual pay for individual workers.

To contact the reporters on this story: Michael J. Moore in New York at mmoore55@bloomberg.net; Christine Harper in New York at charper@bloomberg.net

To contact the editor responsible for this story: David Scheer at dscheer@bloomberg.net.

Photographer: Scott Eells/Bloomberg

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Photographer: Scott Eells/Bloomberg

A pedestrian passes in front of 200 West Street, which houses the headquarters of Goldman Sachs Group Inc., in New York.

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