Goldman Sachs 2001 Annual Report Download - page 14

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Our goal is to provide superior RETURNS to our shareholders. Profitability is critical
to achieving superior returns, building our capital, and attracting and keeping our best
people. Significant employee stock ownership aligns the interests of our employees
and our shareholders.
SUPERIOR RETURNS TO SHAREHOLDERS
Although going public brought some
change, one constant at Goldman Sachs is
the focus on creating superior, long-term
returns for our owners. Despite dramatic
shifts in the business environment since
we went public in 1999, our stock price
rose 68% from our IPO to the end of fiscal
2001. That compares with a decline in the
S&P 500 index of 16% for the same period.
As 2001 demonstrated, our businesses
are inherently cyclical. Nevertheless, this
year also showed the benefits of having
breadth and diversity in our businesses.
The challenging environment led to lower
net revenues in key areas like Investment
Banking and Equities in 2001. However,
our Fixed Income, Currency and Com-
modities franchise capitalized on favorable
market conditions for their businesses,
and produced record results. That perfor-
mance helped Goldman Sachs generate
an 18% return on tangible shareholders’
equity despite 2001 being a difficult year.
We also remained a leader in Mergers and
Acquisitions and Equity Underwriting,
which we believe positions us well to
generate strong returns in those businesses
when the economic environment improves.
page 12
3
PRINCIPLE NO.