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Executive Summry

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Executive summary – Goldman Sachs

The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.

Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers around the world. They report their activities in the following four business segments:

• Investment Banking
• Institutional client services
• Investing & lending
• Investment risk management

Goldman Sachs commits people, capital and ideas to help our clients, shareholders and the communities we serve to grow.

The firm also provides mergers and acquisitions advice, underwriting services, asset management, and prime brokerage to its clients, which include corporations, governments and individuals. The firm also engages in market making and private equity deals, and is a primary dealer in the United States Treasury security market.
Former employees include Robert Rubin and Henry Paulson who served as United States Secretary of the Treasury under Presidents Bill Clinton and George W. Bush, respectively, as well as Mark Carney, the governor of the Bank of Canada since 2008, Mario Draghi, governor of the European Central Bank and Mario Monti, the Prime Minister of Italy.

As of 2009, Goldman Sachs employed 31,701 people worldwide. In 2006, the firm reported earnings of US$9.34 billion and record earnings per share of $19.69. It was reported that the average total compensation per employee in 2006 was US$622,000. However, this number represents the arithmetic mean of total compensation and is highly skewed upwards as several hundred of the top recipients command the majority of the Bonus Pools, leaving the median that most employees receive well below this number. In Business Week's recent release of the Best Places to Launch a Career 2008, Goldman Sachs was ranked No.4 out of 119 total companies on the list. The current Chief Executive Officer is Lloyd C. Blankfein. The company ranks No.1 in Annual Net Income when compared with 86 peers in the Investment Services sector. Blankfein received a $67.9 million bonus in his first year. He chose to receive "some" cash unlike his predecessor, Paulson, who chose to take his bonus entirely in company stock.
Due to investors have been complaining that the bank has near 11,000 more staffers than it did in 2005, but performances of workers were drastically decline. In 2011, Goldman's 33,300 employees generated $28.8 billion in revenue and $2.5 billion in profit, but it represents a 25 percent decline in revenue per worker and a 71 percent decline in profit per worker compared with 2005. The staff cuts in its trading and investment banking divisions are possible as the company continues to reduce costs to raise profitability. In 2011, the company has cut 2,400 positions.

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