Top execs at Goldman Sachs have been considering deep cuts to staffing levels and pay for at least two years, but feared too many layoffs would leave the firm unprepared for an eventual pickup in business, people familiar with the bank told BI.
They instead chipped away at staff levels and focused on
non-personnel expenses that are less painful to cut. But investors pressured the bank to cut costs
further, the sources said, and on Wednesday, Goldman gave in. The largest standalone investment bank said
in the fourth quarter it cut the percentage of revenues it pays to employees in
half to 21 percent. That brings the ratio for the entire year to its
second-lowest level since the bank went public in 1999.
Read more: http://www.businessinsider.com/goldman-sachs-agonized-over-pay-cuts-2013-1
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