Compensation and Benefits
Compensation and benefits expenses (including salaries, discretionary compensation, amortization of equity awards and other items such as benefits) were $12.61 billion for 2013, 3% lower than 2012. The ratio of compensation and benefits to net revenues for 2013 was 36.9% compared with 37.9% for 2012. Total staff (11) increased 2% compared with the end of 2012.
Full YearNon-compensation expenses were $9.86 billion for 2013, 2% lower than 2012. The decrease compared with 2012 included a decline in insurance reserves, reflecting the sale of the firm’s Americas reinsurance business, and a decrease in depreciation and amortization expenses, primarily reflecting lower impairments and lower operating expenses related to consolidated investments. These decreases were partially offset by an increase in other expenses, due to higher net provisions for litigation and regulatory proceedings, and higher brokerage, clearing, exchange and distribution fees. Net provisions for litigation and regulatory proceedings for 2013 were $962 million compared with $448 million for 2012.Fourth QuarterNon-compensation expenses were $3.04 billion for the fourth quarter of 2013, 3% higher than the fourth quarter of 2012 and 40% higher than the third quarter of 2013. The increase compared with the fourth quarter of 2012 included an increase in other expenses, due to higher net provisions for litigation and regulatory proceedings, partially offset by lower operating expenses related to consolidated investments. This increase was partially offset by a decline in insurance reserves, reflecting the sale of the firm’s Americas reinsurance business. Net provisions for litigation and regulatory proceedings for the fourth quarter of 2013 were $561 million (primarily comprised of net provisions for mortgage-related matters) compared with $260 million for the fourth quarter of 2012 (including the settlement with the Federal Reserve Board regarding the independent foreclosure review). The fourth quarter of 2013 also included $196 million of impairment charges, principally related to consolidated investments, and a $155 million charitable contribution to Goldman Sachs Gives. Compensation was reduced to fund this charitable contribution to Goldman Sachs Gives.
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