What do you think about the enormous pay difference between the most prestigious private equity firm (Blackstone) and the most prestigious investment bank (Goldman)
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I think it is unfair and should be ended immediately. That money could be going to charity or being used to feed starving africans! Executive compensation in this country is truly sickening.
That's incorrect. Goldman is more like 600~
Keep in mind Blackstone has I believe 770 employees and Goldman Sachs has roughy 31,000.
The average Blackstone employee makes more than 8 times the average Goldman employee.
I guess making that jump to Private Equity does mean higher earnings after all.
http://nymag.com/daily/intel/tags/goldman%20sachs
According to this article the average Goldman employee makes $360,000 compared to the $2.95 million for the average Blackstone employee.
I guess Goldman employees are worth on average just 1/9th of Blackstone guys.
Read the article - the figure quoted is earnings. Pay is 622 per employee.
http://www.nypost.com/seven/12132006/news/regionalnews/16_bil_sachs_of_…
Also, anyone who is under 35 and is earning more than six figures at Blackstone probably got some help from Daddy. That's not a real job; it's a favor.
I don't know here is another article that states $360,000.
http://www.ibtimes.com/apnews/20070323/wall-amp-main.htm
Whatever the case, $622K or $360K - the bottom line is the average Blackstone employee makes a lot more than the average Goldman employee.
Are you retarded? Pay is not net income or earnings. Pay is pay. It is an expense. Have you ever taken an accounting class?
This is what the article says:
That means each of its 770 workers produced an average of $2.95 million in net income. By comparison, employees at Goldman Sachs Group Inc. - the largest U.S. investment bank - each averaged about $360,000 for the company in 2006.
Sorry, I missed that one and yes, I have taken accounting.
I understand that it was a mix up.
You really can't compare these numbers. For all you know, Goldman has a higher ratio of janitors to bankers than Blackstone. A much better example would be to compare the average salary among similar positions.
Thanks CompBanker, my point exactly. GS is an enormous Conglomerate. They have individual offices that have more employees than Blackstone as a whole. You make the assumption that the earnings are equally distributed at Blackstone and GS. This article might confer that the people at the top of Blackstone make a significantly higher amount than people at the top of GS, which wouldn't suprise me. But to assume on an person by person basis that this is true is just not logical. Think about it, how many jobs can you walk in and make $3mill from day one? Unless you're an MD from another firm coming to Blackstone, I can't see them handing a check for 3 million to every new employee. It's not logical.
what about tons of people in OPs and IT and Finance, who dont get paid much. What about outsourced offices where pay scale is much lesser. Goldman sure has more of these than Blackstone.
This thread sucks.
Do janitors in Blackstone make 3 million? If you answer is no, then you can't simply compare the two numbers because GS and Blackstone have different ratios of janitors.
There is absolutely no way that Blackstone, or KKR, or any Hedge Fund for that matter also will pay ANYONE $3 million a year the day they walk in the door unless that person has been a proven hot commodity at their previous place of employment (usually an investment bank) at the Managing Director level.
average salary is the most meaningless metric to compare in this instance...
guys were disclosed around Christmas time 06 on fox 11 news and it was between 25-50 million! which is not too bad. Someone can correct me if I am wrong, but i don't know how frequent it is to go over 50 million in PE. Also goldman is not known for high pay and i am sure that some high profile boutiques pay more to keep top guys.
Goldman's not known for high pay at the junior levels BUT at the senior levels it definetely is known to pay top of the street.
how senior are taking about? VP? MD? or partner? They just said that top bonuses were 25-50, but did not say whether it was S&T/Research/corporate finance. So do you think 25-50 is possible for corp fin MD at Goldman? I am a little confused cause the max I see in the vault reports for MDs at BBs is 1-3. So which is it?
research the difference b/w median and average.
and evaluate your life if 600k/yr is not enough for you.
S&T of course
THIS THREAD MAKES ME DIZZY
$1.5 - 3 million is the average comp. for a Bulge Bracket IBD MD.
PMD is Partner Managing Director. This is the term used for a special and more senior group of Managing Directors at Goldman Sachs that make more than the average Managing Director.
jambaman
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