Goldman Sachs cuts back on bankers’ compensation

Investment bank Goldman Sachs has set aside $13.1bn (£8.3bn) for pay and bonuses for the first nine months of 2010.

The remuneration pot is 21% smaller than last year when $16.71bn was ear marked for employees’ compensation and benefits.

The fall in compensation expenditure comes at a time when the bank announced its net income of $1.9bn was 40% lower in the third quarter than it was in the same period in 2009.

Lloyd C Blankfein, chairman and chief executive officer of Goldman Sachs, said: “While economic conditions continue to be challenging in a number of important markets, our focus is helping our clients achieve their goals.”

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