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Paul J. Davies

Goldman Sachs Bankers Win Big. Its Investors Aren’t Pleased.

The concern for shareholders is that future profits are going to be squeezed by higher pay.

Stockholders have concerns despite a solid 2021.

Stockholders have concerns despite a solid 2021.

Photographer: Scott Eells/Bloomberg

Goldman Sachs’s workers have been the big winners from the recent boom in dealmaking and trading compared with both its shareholders and peers at rival banks.

Investors didn’t take the news well: Goldman’s stock tumbled 8% even though it reported record full-year revenue and profits on Tuesday. The bank’s performance in fourth-quarter and full-year investment banking fees and trading revenue in bonds, currencies and commodities also beat that of rivals and analysts’ forecasts. Stock trading was the only downer.