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A big, big bonus at Goldman Sachs

Wednesday, December 13, 2006

N.J. Burkett
More: Bio, 7online.com News Team

(New York - WABC, December 13, 2006) (WABC) -- Wall Street giant Goldman Sachs will set a record this year when it comes to paying bonuses.

It is giving out $16.5 billion. Some top executives are expected to get a whopping $100 million dollars.

They are the highest paid people in one of the world's richest cities, and they're about to make even more.

After a year of record profits on Wall Street, investment banks are dividing up the winnings. Goldman Sachs is reportedly leading the way:

Average worker at Goldman will take home $622,000 this year

Senior administrators will get $5 to 10 million dollars

Senior executives and traders get $10 to 20 million each

Company CEO and department heads get $25 million

Top traders will get $50 million and more

"The reason they're making so much money for themselves is because they're making so much money for their firms ... You can debate all day whether it's fair or unfair but they're being compensated as a portion of what they're making," Neil Weinberg, of Forbes Magazine, said.

The bonuses help fuel the city's economy through income taxes and sales taxes. Everyone from luxury car dealers to jewelers will feel it.

But economists say Wall Street's richest drive up the cost of living in New York and widen the gap between the rich and everyone else.

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