Discover your dream Career
For Recruiters

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. 

Get Morning Coffee  in your inbox. Sign up here.

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. 

Have a confidential story, tip, or comment you’d like to share? Contact: +44 7537 182250 (SMS, WhatsApp or voicemail). Telegram: @SarahButcher. Click here to fill in our anonymous form, or email editortips@efinancialcareers.com. Signal also available.

Bear with us if you leave a comment at the bottom of this article: all our comments are moderated by human beings. Sometimes these humans might be asleep, or away from their desks, so it may take a while for your comment to appear. Eventually it will – unless it’s offensive or libelous (in which case it won’t.)

author-card-avatar
AUTHORSarah Butcher Global Editor

Sign up to Morning Coffee!

Coffee mug

The essential daily roundup of news and analysis read by everyone from senior bankers and traders to new recruits.

Boost your career

Find thousands of job opportunities by signing up to eFinancialCareers today.
Recommended Articles
Recommended Jobs
Caxton Associates
Associate Portfolio Manager Program - Dubai
Caxton Associates
Dubai, United Arab Emirates
Deutsche Bank
Trader - Vice President
Deutsche Bank
New York, United States
DTG Capital Markets
Proprietary Trader (US, remote)
DTG Capital Markets
New York, United States
Hunter Bond
Technical Business Analyst - Leading Trading Firm
Hunter Bond
London, United Kingdom

Sign up to Morning Coffee!

Coffee mug

The essential daily roundup of news and analysis read by everyone from senior bankers and traders to new recruits.