Monday, January 08, 2007

"Bonus Heaven"

We finally finished doing our 2006 staff appraisals today and everybody's dreaming of getting a record bonus come March. While taking a break at the end of the work day I found myself on the Forbes website and the first article to catch my eye was titled "How to Bail with your Bonus" which is basically about how January and February are "that time of year when fed-up employees are most tempted to take their bonuses and head for the exits." I've seen it happen many times. People at work who you know hate their job, or who you've heard rumors about them having gotten offers from competitors, are just hanging in till they get their bonus and then immediately give their thanks by handing in their resignation letters. Anyhow, I have no plans of quiting my job any time soon and what really got my attention was that the article mentioned that Goldman Sachs has set aside an incredible $11 billion for bonuses this year!
"Anyone at the bonus line at Goldman Sachs died and went to bonus heaven," said Michael Holland, chairman of Holland & Company, a New York-based investment firm. "It doesn't get any better than this." (Link)
According to a December 2005 New York magazine article about Goldman Sachs' bonus that year:
If the firm split its potential $11 billion pie equally among all 22,000 employees worldwide, they’d each get $500,000. But that’s not how it works.

The Big Piece
There are 250 or so partner managing directors, each of whom would receive an average bonus of $2 million right off the top. The rest depends on the success of their part of the business, and it can be massive. Top income-producers like Mark McGoldrick, co-head of global proprietary investment, can make upward of $40 million.

The “Tide You Over Until You’re a Somebody” Piece
Executive managing directors, also known as “MD Lites,” can make up to $3 million.

The Table Scraps
Just-out-of-college analysts make $70,000 and hope to match that in bonus. Associates, with M.B.A.’s, hope to match their $95,000 salaries with a bonus, too. Secretaries who make as much as $75,000 have their sights set on bonuses of roughly $15,000.

2 comments:

Anonymous said...

Do those Gold people have a company branch here in Oman ?

Anonymous said...

Some good companies pass on the bonus to their employees who quit months before the bonus was declared.