Goldman Sachs gives out $16bn bonuses

13 December 2006

Goldman Sachs has announced its compensation and benefits expenses total $16.46 billion for 2006, a 40 per cent increase on 2005.

The investment bank explained the rise was due to higher net revenues and increased employment levels.

Goldman Sachs reported net revenues of $37.67 billion and net earnings of $9.54 billion for the year to November 24th, with growth across all sectors.

For the fourth quarter net income increased 93 per cent to $3.15 billion and net revenue was up 47 per cent to $9.41 billion.

Lloyd Blankfein, Goldman Sachs chairman and chief executive, said: "We are very pleased with this year's performance.

"The breadth of our franchise, the diversity of our businesses and the performance of our people enabled us to serve our clients around the world."

After such dynamic growth, some analysts have reported concerns over whether such increases could continue into the next year.

David Stepherson, a portfolio manager at Hardesty Capital Management, told Reuters: "Everybody is somewhat jittery about the future growth of this company. It's doubtful they will have the type of year they just had."

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