I often hear references to higher compensation at Goldman. What people fail to mention is that net income generated per head is a multiple of our peer average. The people of Goldman Sachs are among the most productive in the world.How is this so when Goldman Sachs had to be bailed out to the tune of mulitple billions and hedged through AIG for additional billions, not to mention that Goldman Sachs doesn't produce anything?
As an investment bank Goldman Sachs employees are largely paper shufflers, essentially debt traders. Debt is about all it produces and that not very well since it need billions in bailout.
By the way, the point above about the "peer average" makes it right, eh? It's not that the industry itself needs reform or that the average is out of wack as Goldman Sachs has far fewer employees as pointed out in the Financial Times article.
Wall Street banks executives are so far removed from reality.