Goldman Employees Need More Money

Cry for Goldman. Please.

The firm's president, Gary Cohn, told a New York investor conference yesterday that it can't cut pay further for its 32,400 employees without risking its ability to do business. Compensation expenses are down 40% since 2007, he said, while Goldman's peers have cut comp by a mere 1% during the same time frame.

Cutting pay further may raise return-on-equity, Cohn said, but top talent will defect to competitors, or even to clients, who are willing to shell out more cash for Goldman-seasoned workers.

"Losing those good people will have a dramatic impact on revenue," Bloomberg reports Cohn as saying.

To reduce overall costs, the firm has laid off more than 2,400 workers over the course of a year. During Goldman's first-quarter earnings call, Chief Financial Officer David Viniar said the bank would "look for other means of efficiency" to help lower costs. It has been hiring in cheaper regions such as Salt Lake City, Dallas, Singapore and Bangalore, India, where employees can cost up to 75% less than those in banking hubs such as New York, Tokyo and London.

Let's not cry too much for the bank's employees. While Goldman set aside $4.4 billion for employee compensation in the first quarter, down from $5.23 billion in last year's first quarter, that's still enough to give each employee a six figure payout: $135,123 this year versus $147,825 last year. (Bloomberg)

Dark Clouds (FINS)

According to the latest monthly layoffs report from Chicago-based outplacement firm Challenger, Gray & Christmas, the number of planned job cuts rose in the financial services sector and the overall economy in May.

New Leaders (DealBook)

Deutsche Bank Chief Executive Josef Ackermann stepped down from his position at the bank yesterday, after more than 10 years in the role. He handed the reins jointly to Anshu Jain and Jürgen Fitschen.

Neat Freaks (AOL Jobs)

Somewhat unsurprisingly, a new study from San Diego State University finds that women keep their offices cleaner and more sanitary than men.

Bolstering in Brazil (Deal Journal)

Boutique M&A advisory firm Lazard has appointed Henrique Meirelles as chairman of its Americas division. Meirelles, the former head Brazil's central bank, is a critical add as the firm attempts to heighten its investment-banking presence in the South American country.

Thanks, JPM (Bloomberg)

Most bankers will probably be disappointed to hear that the U.S. Commodity Futures Trading Commission is considering even tighter stipulations when it implements the so-called Volcker Rule, following the $2 billion dollar loss currently rocking J.P. Morgan.

Being Honest (Bloomberg Markets)

Here's the story of Sherry Hunt, the former vice president of Citigroup's mortgage unit who took the company to court in 2011 on charges that it violated mortgage regulations. She recently won $31 million in a settlement with the bank.

Losing Steam (Robert Walters)

The total number of jobs advertised in Asia fell by 1.4% last quarter, according to the quarterly Asia Job Index published by international recruitment consultancy Robert Walters.

Nabbing the Culprits (WSJ)

Japan's understaffed regulatory agencies may be getting more power in their pursuit to uncover insider-trading violations. A likely stipulation will involve higher fines for those involved in insider trading and punishment of the source involved in the release of confidential information.

Delaying the Inevitable (WSJ)

James Dimon's appearance before the Senate following his bank's recent trading losses has been rescheduled for a week later than initially planned.

Buzz Around the Office

Old People Smell Better (LA Times)

A new study shows that older people's body odor is more pleasant and less intense than that of young and middle-aged folks.

List of the Day: Getting Your Attention Span Back

Technology has made focusing on important tasks harder. Here are a few tips to get your productivity back.

1. Do the most important thing on your to-do list first thing in the morning.

2. Keep a running list of things you need to do so you don't work as hard at remembering to do them.

3. Read interesting books in your spare time, as reading helps train your brain to focus.

(Source: AOL Jobs)