Goldman paid $ 5.5 bn to London staff in salary, bonuses

LONDON: Goldman Sachs, which is being probed by the US and the UK authorities for its role in the financial meltdown, shelled out $ 5.5 bn to its London staff in salary and bonuses last year.

The Sunday Times has reported that Goldman, "at centre of a criminal investigation into its role in financial crisis, paid its London staff USD 5.5 billion (3.6 billion pounds) in salary and bonuses last year".

"The payouts equate to an average of USD 1 million each - almost twice as much as the average pay deal across the rest of the group," the publication said.

According to the report, the figures were detailed in accounts filed at Companies House. The compensation details come amid rising criticism over exorbitant pay packets for bankers.

"Goldman Sachs International, the bank's London arm, employs about 5,500 people. The bank paid USD 600m to cover the Treasury's bonus tax...," the report noted.

The Sunday Times said the size of the staff payouts registered in the books has been inflated by the sharp recovery in the bank's share price - which boosted the value of staff share options by USD 1.8 billion.

"The accounts also show that Goldman's London employees have been handed new share options worth almost 500 million pounds," it added.

Last month, US market regulator Securities and Exchange Commission had filed a lawsuit against Goldman Sachs alleging that the entity caused losses of over USD 1 billion to investors by misrepresenting facts about a financial product tied to sub-prime mortgages.

A separate investigation has been launched into the bank by the British regulator Financial Services Authority, the report said.