Goldman Sachs killed it in the second quarter, more than doubling its net income compared to the same period a year ago. Employees are enjoying the riches – with total compensation spending up 27% year-over-year – but that doesn’t necessarily mean everyone is jumping for joy. Goldman Sachs actually set aside a smaller portion of the pie during the first half of this year.
The average employee took home $253,691 during the first half of the year, up from $225,789 during the same period a year ago. But you can attribute that increase to a rise in revenue and net income during the first half of 2013.
Compensation was up 10% during the first six months. Revenue, meanwhile, increased 13%. Goldman, which employs 600 fewer people than it did a year ago, is doing more with less. Sure, pay is rising, but the all-important ratio of compensation to revenue dropped a full percentage point during the first half of 2013. So it really depends if you are a glass-half-full or glass-half-empty type of person.
Either way, candidates are flocking to Goldman at a greater pace, clearly recognizing the firm’s resurgence. Harvey Schwartz, Goldman’s CFO, said the firm is experiencing some “recruiting tailwinds,” and that employees are “always in high demand and our competitors are always looking to take them over to their firms.”
Jumping to the Buy Side (eFinancialCareers)
Whether you’re a banker, broker, trader or analyst, your desire to ditch the sell side for a buy side career is likely intensifying. Here are some tips on making the jump.
Paying More, Earning Less (WSJ)
The bad news is that Charles Schwab missed second quarter earnings expectations. The good news, at least for those working at the discount brokerage firm, is that much of the drop had to do with higher compensation costs.
What to Look For (WSJ)
As we’ve mentioned, the Fed’s decision on when to end its $85 billion-per-month bond-buying program will have a significant impact on Wall Street. Fed Chairman Ben Bernanke is speaking tomorrow. Here’s what to look for.
Incoming CFO (Bloomberg)
Tushar Morzaria, chief financial officer of corporate and investment banking at J.P. Morgan, will replace Chris Lucas as the CFO of Barclays when he retires early next year. Morzaria will join Barclays this fall.
Great Training Ground (Business Insider)
People complain about the pains of being an investment banker, but they often forget what a great training ground it provides for other career paths, says Philippe Laffont, founder and CEO of Coatue Management.
Conflicting Reports (FIN Alternatives)
Anthony Davian of hedge fund Davian Capital Advisors is reportedly being investigated by federal authorities. Davian was allegedly admitted to the hospital with carbon monoxide poisoning after his wife found him passed out in his car, but claims he and his firm are fine.
Speed Networking (eFinancialCareers)
Increasingly, investment banks are turning to a decidedly quirkier option to connect people – speed-networking. In order to succeed, though, you need to follow the rules.
Buzz Around the Office
Intrinsic Value (Daily Caller)
Rap mogul Kanye West debuted a new item in his clothing line. It’s a plain white cotton T-shirt. It costs $120.
List of the Day: Red Flags
If you are having trouble getting hired, this could be the problem.
- You ask for special favors during the interview process.
- Your references are less than enthusiastic.
- Your online profile is sketchy.
(Source: AOL Jobs)