Times are getting tougher for the average Goldman Sachs employee.
With third quarter revenue at the top-notch Wall Street bank falling short of expectations, CEO Lloyd Blankfein on Thursday cut the amount of cash held aside for compensation by 5 percent.
The smaller pile of cash is enough to pay each of the firm’s 32,600 employees about $319,755 — down from $336,442 last year through nine month.
That’s about $16,700 less per employee.
While no one will need to pass the hat for Goldman employees, to make up for the shortfall bankers at the firm might have to:
- Give up leasing those his and hers BMW 550i Gran Turismo
- Get an $8 an hour job on the night shift at the local McDonald’s
- Rent that Hamptons cottage next summer for one month instead of two.
“The third quarter’s results reflected a period of slow client activity,” Blankfein, Goldman’s chairman and CEO, said in a statement.
The average compensation figures represent the total cash set aside by the firm for compensation divided by the total number of employees and don’t reflect what any specific person will earn.
Goldman shares are down 2.4 percent at 9:40 a.m. Thursday, to $158.98.