Goldman Jolts Traders With Bonus Warning After Bumper Haul
- It’s unusual for banks to slash rewards when revenue jumps
- Managers are trying to limit costs after consumer unit losses
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Goldman Sachs Group Inc.’s traders, on the way to posting their biggest revenue haul in more than a decade, are in for a surprise as cost pressures force the firm’s leadership to cut their year-end bonuses.
Executives in the firm’s global markets division were warned this week that its compensation pool will be slashed by a low double-digit percentage, according to people with knowledge of the discussions. That diverges with industrywide projections and the unit’s own outperformance. Goldman’s annual trading revenue is on track to top $25 billion, with analysts estimating it will eclipse last year’s mark by 15%.