Goldman Sachs has increased banker pay including bonuses by 17% after profits more than doubled in the second quarter, following a rebound in dealmaking.

 

The Wall Street firm said it spent $4.2bn (£3.2bn) on compensation and benefits for its 45,300 staff in the three months to June, up almost a fifth from the same period last year. That figure accounts for salaries and pensions, as well as the amount being put aside for individual bonuses that are distributed at the end of the financial year.

 

Overall, Goldman has spent $8.8bn on compensation and benefits for staff since January, which the bank said reflected “improved operating performance”. Financial filings show that Goldman’s profits surged 150% to $3bn in the second quarter, up from $1.2bn last year.

 

Profits were boosted by a jump in business deals, with its investment bankers helping guide firms through a fresh wave of mergers and takeovers. That includes ExxonMobil’s $60bn takeover of Pioneer Natural Resources in May, for which Goldman acted as a broker alongside the rival banks Morgan Stanley and Citigroup.