Monday, December 18, 2006

Why Finance jobs?

Goldman Sachs last week reported the most profitable year ever for a Wall Street investment banking institution, with total revenues of $33bn, around half that amount set aside for pay and benefits to staff. It emerged this week that the bank, which has enjoyed a record year, would be paying bonuses of unprecedented magnitude to its 4,500 employees in the capital. With £9bn to share around the world - an increase of 40 per cent from 2005, itself an exceptional year - the average employee here will receive £319,000. And that average includes everyone. High-fliers will receive between £3m and £10m; one or two are rumoured to be in line for £50m.

Market sources say Morgan's chief executive, John Mack, could collect as much as £20m in stock options for 2006. Goldman Sachs's chief executive, Lloyd Blankfein, could be in line for compensation exceeding £25m, and analysts say other chief executives, such as James Cayne of Bear Stearns and E Stanley O'Neal of Merrill Lynch, could get £20-£25m or higher.

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