Goldman Sachs sets aside $12bn to pay staff in 2011

The Goldman Sachs building in New York. The US investment bank's staff will get on average payout of $367,000 including bonuses and benefits. Photograph Lucas Jackson/Reuters

Goldman Sachs set aside $12.2bn (£8bn) to pay its staff in 2011 – an average of $367,000 (£238,000) each – sparking criticism that the Wall Street firm was living in a "parallel universe".

The payouts sparked a backlash from unions, who regard them as evidence that David Cameron's government should take steps to ensure top pay is better linked to performance. Campaigners for a "Robin Hood tax" on transactions said it backed their case for new levies on banks.

"When even in a bad year each Goldman employee pockets an average of $367,000 – nearly 10 times the average UK salary – it's proof that banks live in a parallel universe to the rest of us," said a spokesman for the Robin Hood Tax campaign.

Goldman used a greater proportion of its revenue (42%) to pay its 33,000 staff in 2011, compared with 39% a year ago. The firm axed 7%, or 2,400, of its staff during the year and those who remain will learn the size of their bonuses in coming days.

The highest profile firm on Wall Street reported full-year revenues of $28.8bn – down 26% and earnings almost halved to $4.4bn. Lloyd Blankfein, chairman and chief executive of Goldman, blamed "global macroeconomic concerns".

The total payout per staff member of $367,000 – a figure which includes salaries, bonuses, equity awards and benefits – was down 15% on the $430,000 paid the previous year. The actual amount set side to pay staff was down 21% at $12.2bn.

David Viniar, Goldman's finance director, insisted "discretionary" bonuses were down "considerably more than revenues" during the year and said the firm had embarked on a strategy to cut $1.4bn of costs.

But the TUC general secretary, Brendan Barber, said: "Goldman Sachs are brazenly defying their own sliding profits by dishing out pay and top bonuses worth £240,000 a head. This latest example of excessive rewards for mediocrity should give the government the green light to get tough on top pay. Ministers should start by putting workers on remuneration committees and making pay and bonuses exceeding £260,000 liable for corporation tax."

The firm has recently disclosed more about its pay deals in the UK as a result of rules set out by the Financial Services Authority requiring firms to publish pay for "code staff" – those taking or managing risk. Regulatory filings for Goldman Sachs Group Holdings (UK) show that it had 95 code staff in 2010 who had an average pay deal of $6.2m (£4m) in 2010 – and had a further $595m awarded in a one-off mid-year award of shares in 2010.

"This past year was dominated by global macroeconomic concerns which significantly affected our clients' risk-tolerance and willingness to transact," Blankfein said.

"As economies and markets improve – and we see encouraging signs of this – Goldman Sachs is very well positioned to perform for our clients and our shareholders," he added.

The turmoil in the eurozone held back many of its business areas. Revenues in investment banking were down 9% while its business that underwrites share offerings was down 14%. Its fixed income, currency and commodities operations suffered a 34% fall in revenue.

"Although activity levels in 2011 were generally consistent with 2010 levels, and results were solid during the first quarter of 2011, the environment during the remainder of 2011 was characterised by broad market concerns and uncertainty, resulting in volatile trading and significantly wider credit spreads, which contributed to difficult market-making conditions and led to reductions in risk by the firm and its clients," the firm said.