FILE - The logo for Goldman Sachs appears supra a trading station connected the level of the New York Stock Exchange, Tuesday, July 13, 2021. Goldman Sachs said, Tuesday, Jan. 18, 2022, its fourth-quarter profits fell by 13% from a twelvemonth earlier, mostly owed to the slope preparing to wage retired hefty wage packages to its well-compensated employees. Its the latest motion that wages are expanding sharply, peculiarly connected Wall Street. (AP Photo/Richard Drew) (Richard Drew, Copyright 2021 The Associated Press. All rights reserved)

NEW YORK – Goldman Sachs' said its fourth-quarter profits fell by 13% from a twelvemonth earlier, mostly owed to the slope preparing to wage retired hefty wage packages to its well-compensated employees.

It's the latest motion that wages are expanding sharply, peculiarly connected Wall Street. Most of the large banks who person reported their results truthful acold person indicated plans to wage employees much successful the upcoming year.

The New York-based concern slope earned a nett of $3.94 billion, oregon $10.81 a share. That's down from $4.51 billion, oregon $12.08 a share, successful the aforesaid play a twelvemonth earlier. The results missed analysts' expectations, who were looking for connected mean a nett of $11.80 a share, according to FactSet.

While Goldman was capable to turn revenues successful the quarter, those gains were much than wiped retired by the firm's compensation expenses. The slope acceptable speech $3.25 cardinal to screen compensation and benefits successful the quarter, up 31% from a twelvemonth earlier.

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Goldman typically has precocious compensation expenses, peculiarly successful the past 4th of the twelvemonth arsenic the slope prepares to wage retired its yearly bonuses to its employees. These bonuses tin often beryllium aggregate times an employee's salary, peculiarly the firm's best-paid traders and concern bankers.

But rising inflation, arsenic good arsenic rising contention for employees among the concern banks, has pushed wages importantly higher astatine the banks. Bloomberg News reported precocious past week that the steadfast was preparing to wage retired peculiar one-time bonuses to support its astir invaluable employees.

Pay astatine the steadfast is tied straight into however good the wide institution does successful the year, and this twelvemonth was incredibly bully for Goldman. The steadfast made $21.64 cardinal successful profits past year, much than treble what it earned successful 2020.

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