How does a global bank manage expenses without drastically reducing headcount? Sack a bunch of olds (i.e. anyone over 36) and raid the Brother Jimmy's on Lexington and 31st for talent.
CEO Lloyd Blankfein noted in his annual shareholder letter released earlier this week that overall compensation and benefits expenses have dropped by about $270 million over the past four years, while total staff levels are up 11%. "Through a combination of shifting to a greater percentage of junior employees and relocating some of our footprint to lower-cost locations, we have managed our expenses well," Blankfein wrote. Specifically, the number of analysts, associates, and vice presidents — that is, the more junior employees — is up 17% over the past four years, while the more senior managing director and partner population is down 2%.