Goldman Sachs Group Inc. traders are facing some end-year bah humbug as the Wall Street bank reportedly plans to reduce their bonuses, despite expectations for strong revenue this year.
Bonuses are expected to be cut by a low double-digit percentage, according to sources cited in a Bloomberg report that published Friday.
Executives at the bank’s
global markets unit were given a heads up this week. More adjustments may be made to that pool of bonuses, with discussions under way between management and executives, those sources say.
The cuts come as the Wall Street bank is expected to report global markets revenue of $25 billion in 2022, according to FactSet research estimates. That would soundly beat the $22 billion revenue reported in 2021. But the bank is also eager to safeguard profits after an expensive move into consumer banking.
“Against the backdrop of uncertainty and volatility in the markets, we continue to prudently manage our resources and remain focused on risk management as we serve our clients,” Chief Executive Officer David Solomon said, as the bank reported results in October.
The third quarter saw Goldman beat lowered profit expectations and confirm plans to reorganize into three business units in a move to emphasize its fee income.
The bank did not respond to a request for comment by Bloomberg. MarketWatch has also reached out for a comment on the bonus reductions.