Investment bank Goldman Sachs (GS), the focus of much of the public outrage over excessive bonuses, will cap the salary and bonuses of its London partners at 1 million pounds ($1.6 million), Bloomberg News reported, citing a person familiar with the situation.
The decision is expected to affect about 100 of Goldman’s 5,000 London employees, the person said, who declined to be identified because the plan is private. Some traders may make more than 1 million pounds, the person said. Goldman Sachs staff will be told of their bonuses from today.
The Sunday Times, which reported the salary caps earlier, said the move could alienate staff and risk a string of resignations at the bank. Some Goldman Sachs employees have received bonuses of more than 10 million pounds in previous years.
The bank declined to comment on the bonus cap, but it is understood that it will only affect London staff.
Goldman has sparked outrage among critics for preparing to pay more than $20 billion in compensation this year, only months after receiving $10 billion bailout from the U.S. taxpayer.