Goldman Sachs has cut employees’ salaries following the expiration of a pay deal introduced two years ago.
The firm had handed inflated salaries to several hundred London-based banking staff in 2009 to allay concerns of bonus uncertainty during the financial crisis.
During 2009 bankers’ bonuses came under increased scrutiny amid economic turmoil and were subjected to a 50% super tax in December of that year.
The investment bank has informed the employees that their salaries will be brought back down to previous levels, in line with current market rates.
Goldman Sachs declined to comment.
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