Bonus Watch '11: No Bonus For You (If You Work At Goldman Sachs)?

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Supposedly.

Goldman Sachs is planning to slash bonuses to almost zero amid growing expectations that the Wall Street bank is about to slide into the red for only the second time in its history...Goldman's senior executives are determined to prove that the bank can continue to generate bigger returns for shareholders, despite the market turmoil. They have made an internal commitment to ensure that no more than 35 per cent to 45 per cent of its revenue is paid to staff -- a lower proportion than any other Wall Street bank. The ratio of staff pay to turnover is the key metric used by analysts to determine the efficiency of an investment bank.

Cutting bonuses to the bone is one of the few tools that Goldman can use to keep the ratio under control. It has already cut salaries for its London partners and is also cutting thousands of jobs. However, its third-quarter revenues are expected to have fallen by about half compared with the second quarter, putting the ratio under pressure.

Bruised Goldman slashes bonuses as they slide into red [The Guardian via ZH]

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