Goldman Sachs lifted the bonus cap and London bankers' salaries could fall £350k

Goldman Sachs is lifting the European Union's bonus cap in London. Sky News reported today that Richard Gnodde, chief executive of Goldman Sachs International, has informed staff that the firm wants a "consistent global approach" to pay. 

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While this mean that Goldman Sachs' London bonuses can now increase to more than two times salaries, it also means that Goldman Sachs' London salaries are now likely to fall precipitously to bring them in line with Goldman salaries elsewhere. 

In New York, managing directors at Goldman Sachs are paid salaries of $400k. In London, Goldman Sachs' most recent regulatory filing revealed that the average salary for senior bankers and traders is $847k.

The implication is that senior Goldman Staff in London will now face a $447k fall in salary as the ban is lifted.

Although the change only impacts senior regulated staff, salaries are likely to be recalibrated throughout the GS hierarchy. Goldman MD salaries in London may fall the most, but as MD salaries drop everyone is likely to be impacted. 

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