Major US banks' revenues are being drained by higher employee salaries
In a tight Omicron-tainted labor market where corporations struggle to find and retain employees, major U.S. banks are seeing operational expenditures climb as employee pay, bonuses, and remunerations grow.
To keep its employees, investment firm Goldman Sachs had to boost salaries and benefits, resulting in a 23 percent rise in fourth-quarter operating expenditures compared to 2020 and a 10% rise from the 3rd quarter.
“There is real wage inflation everywhere in the economy, everywhere,” Goldman Sachs CEO David Solomon said on a Tuesday conference call with analysts.
JPMorgan Chase, one of America's largest banks, is seeing performance-based compensation rise in areas such as investment banking, trading, and asset management, thanks to its over $4 trillion in assets under administration.
19 Jan 2022