Goldman Trading Bonus May Jump Nearly 20% After Year’s Windfall
- Traders seen getting much bigger share than unit’s sales team
- Revenue in markets division climbed 49% through September
Goldman Sachs Group Inc. is planning to boost bonuses for the trading division by up to 20%, people familiar with the matter said, after the business reclaimed its stature as the firm’s golden goose.
The fatter paychecks come on the back of a 49% jump in revenue following a sluggish decade for a group that was once the envy of Wall Street. Corners of trading, particularly in fixed income, could expect much bigger payouts as executives try to prevent rainmakers from being lured into the arms of deep-pocketed buy-side firms run by the likes of Ken Griffin, Izzy Englander and Steven Cohen.
There will be greater divergence in payouts than in previous years, with some people potentially getting pay cuts despite generating more revenue, the people said, asking not to be identifed becasue bonus policies aren’t made public. Final numbers are still being ironed out and will depend on how well the firm avoids any setbacks in the final weeks.
Goldman’s bonus decisions have been a touchy topic ever since the firm’s success through the 2008 financial crisis drew public attention. But this year, banks all along Wall Street saw staggering gains, giving powerhouses more cover to share spoils. JPMorgan Chase & Co. is boosting bonuses for its sales and trading workers 15% to 20%, people familiar with those talks have said.