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Goldman Reportedly Offers New Benefits to Soothe Workers

Staffers -- particularly young people -- at Goldman and other top investment banks have complained of overwork recently.
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Goldman Sachs  (GS) - Get Goldman Sachs Group, Inc. Report will offer several new benefits to draw and maintain workers, as staffers -- particularly young people -- at top investment banks complain of overwork.

Much of the changes, as reported by The Wall Street Journal, amount to small potatoes: increasing time off for bereavement loss and introducing paid leaves for pregnancy loss, for example. For veteran employees, Goldman’s launching unpaid sabbaticals-- no work, no pay.

On the more substantive side, Goldman will lift matching contributions for U.S. workers’ retirement funds to 6% of total compensation, or 8% for employees making $125,000 a year or below. The Journal didn’t specify the previous match.

Goldman also will switch to matching employee contributions immediately, after previously waiting a year.

Goldman shares on Monday closed at $386.54, down 0.7%. It has jumped 47% year to date amid optimism for economic recovery and anticipation of tighter monetary policy.

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Morningstar analyst Michael Wong puts fair value at $356.

“Similar to other investment banks, we believe that Goldman Sachs’ net revenue should continue to be relatively strong over the next year,” he wrote last month.

“The economy is recovering, interest rates are low, and the stock market remains high, which should sustain investment banking revenue.

“However, investment banking revenue of $3.7 billion in the [third] quarter was about 90% above the company’s 2018-19 average, and trading revenue of $5.6 billion was about 60% above its 2018-19 average.

“While Goldman Sachs implemented a new strategy to try gain market share over the previous couple years, a good amount of this outperformance is likely transitory -- related to government stimulus and the rebound in the economy.”