Investment bank Goldman Sachs is to cap pay levels for its 100 London-based partners at £1 million.
The decision is part of a move to deflate public anger over banker bonuses and the role of financial institutions in the global economic crisis, the BBC reported.
According to the news provider, Goldman Sachs will “sacrifice several hundred million pounds” in an attempt to show some restraint following the economic turmoil.
However, the best performing bankers and traders who are not partners at the firm could still earn more than £1 million.
Goldman Sachs is thought to believe that cutting base pay packets could lead to the top talent in the banking industry joining other organisations unwilling to slash salaries.
Following the release of the company’s profit figures for 2009, David Viniar, Goldman Sach’s finance officer, said: “We’re not blind to the pain and suffering still going on around the world and we’re not deaf to the calls for restraint. We heard them.”
Staff at the bank will be informed of their pay packet sizes during the next week.
Last week, Goldman Sachs announced a profit of $13.4 billion for 2009, a figure up by $2.32 billion when compared with earnings from the previous year.
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