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Monday, November 28, 2005

Let's compare annual bonuses!

Happy Thanksgiving! In this week's New York Magazine, there is an article about how Goldman divides its annual bonus pool ($11 billion this year). To put that bonus pool into perspective, if you were to evenly divide the $11 billion, each Goldman employee would get a $500,000 bonus! But of course, the money isn't going to be split evenly. Here's a summary of where the money goes:

The Big Piece
There are 250 or so partner managing directors, each of whom would receive an average bonus of $2 million right off the top. The rest depends on the success of their part of the business, and it can be massive. Top income-producers like Mark McGoldrick, co-head of global proprietary investment, can make upward of $40 million.

The “Tide You Over Until You’re a Somebody” Piece
Executive managing directors, also known as “MD Lites,” can make up to $3 million.

The Table Scraps
Just-out-of-college analysts make $70,000 and hope to match that in bonus. Associates, with M.B.A.’s, hope to match their $95,000 salaries with a bonus, too. Secretaries who make as much as $75,000 have their sights set on bonuses of roughly $15,000.

I wonder how some of the other ibanks and banks compare?

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