A pessimistic analyst report from Credit Suisse’s Howard Chen has issued a report saying that Goldman’s fourth-quarter profit could be lower than he previously expected and, much worse, bonuses could plummet to near-record lows.
The Wall Street Journal reports that Mr. Chen anticipates that Goldman will use 40 percent of its 2010 revenue to fund employment compensation. That’s the second-lowest compensation percentage of all time, a decision Mr. Chen attributes to “mgmt discipline and the impact of new hires over the past year.” Fortune‘s Colin Barr reckons that the reduction means total Goldman compensation will run around $15.8 billion, or about $446,327 per employee.
Looks like the era of austerity has not quite ended, even in the gilded halls of Goldman.
mtaylor [at] observer.com | @mbrookstaylor