Goldman Sachs (GS) has always paid its employees well, and they’re getting paid better.
The average Goldman Sachs employee makes $367,564 on an annual basis, according to the firm’s most recent financial disclosures. That is actually down slightly from last quarter but up markedly from a year ago, when average compensation per employee was $254,850. (See Also: What’s the average salary of an investment banker?)
In total, Goldman Sachs spent $3.2 billion on total employee compensation in the third quarter of 2016, up 36% from a year ago. Meanwhile, headcount has fallen by 1,900 to around 34,900.
Since the firm’s reported headcount includes temporary staff and consultants, who will typically not earn a full annual salary, full-time compensation for many Goldman Sachs employees may be markedly higher than the average.
Investment banking salaries are largely dependent on performance and experience, with bankers higher in the ranks, earning more than those earlier in their career. While analysts can make around $110,000 per year at investment banks, managing directors earn much more — as much as $20 million or more. (See Also: What Drives investment Banker Salaries.)
Goldman bankers based in the New York City area are doing much better than most New Yorkers. In New York City, median household incomes were $52,737 in 2014 (the year when estimates were last made), according to data from the Census Bureau. However, average individual income is actually lower in the area, since the Census data includes total earnings from two-income households.
While banker salaries were a hot topic during the 2007/2008 Global Financial Crisis, the issue has become less prevalent in recent years.
Goldman Sachs has also been working to cut down its headcount. Earlier this year, Fortune magazine reported of Goldman’s plans to cut jobs after eliminating 1,700 jobs. More recently, Bloomberg said the firm was continuing its job cuts, aiming to cut loose 420 employees in New York City by the end of 2016. In Asia, even more drastic layoffs are planned, with the bank planning to cut its investment bank workforce by 25%. (See Also: Why is Goldman Sachs Abandoning Asia?)