$60 Million Dollar Bonuses? Welcome to the World of Finance

by Sarah Clark
sarah.clark@careertrainingdirectory.com
Career Training Directory Columnist

Wall Street has enjoyed yet another banner year. Investment banking powerhouse Goldman Sachs reported handing out bonuses as high as nearly $60 million dollars at the close of 2006. In fact, so much money was handed out in bonuses that if evenly distributed across the company, each Sachs’ employee would have taken home $600,000. After that news, degrees in finance and business suddenly look very appealing.

Of course every financial manager can’t work at Goldman Sachs, arguably the most prestigious and exclusive investment banking house in the US. However, Goldman isn’t the only firm handing out golden year-end envelopes. Many financial firms, particularly those involved in choosing and managing investments, distribute bonuses at the end of each year. And the higher the firm’s earnings are, the higher the bonuses will likely be.

Just how high might they be? The Bureau of Labor Statistics (BLS) doesn’t tell us. But they do say that year-end payouts vary widely from firm to firm. They also report that financial managers of brokerages fetch median annual earnings of $129,770. Annual bonuses add some “fun money” to an already attractive salary.

Earning Your Business Finance Credentials

So what do you need to get your piece of this seemingly very big pie? According to the BLS you need at least a bachelor’s degree in business, economics, or finance to get a shot at working in this field. Competition can be fierce for these jobs, so it pays to have an advanced degree from a reputable university.

And what are all these financial heavy rollers doing with their hefty bonuses? Sachs’ chairman and CEO encouraged employees to avoid excess, adding that “…even a perception of arrogance hurts us all,” according to the New York Times.

Nonetheless, some will be indulging in new cars, travel, and other luxuries. After all, why spend life looking after other people’s money if not to enjoy your own? On the other hand, finding yourself among the best in the world of business and finance is rewarding in itself.

About the Author

Sarah Clark is a freelance writer who specializes in postsecondary education and career development.