Goldman Sachs 2009 Annual Report Download - page 53

The following table sets forth our operating expenses and total staff:
Operating Expenses and Total Staff
Year Ended One Month Ended
December November November December
($ inmillions) 2009 2008 2007 2008
Compensation and bene ts $16,193 $10,934 $20,190 $ 744
Brokerage, clearing, exchange and distribution fees 2,298 2,998 2,758 165
Market development 342 485 601 16
Communications and technology 709 759 665 62
Depreciation and amortization (1) 1,734 1,262 819 111
Occupancy 950 960 975 82
Professional fees 678 779 714 58
Other expenses 2,440 1,709 1,661 203
Total non-compensation expenses 9,151 8,952 8,193 697
Total operating expenses $25,344 $19,886 $28,383 $ 1,441
Total staff atperiod end (2) 32,500 34,500 35,500 33,300
Total staff atperiod end including consolidated entities
held for investment purposes (3) 36,200 39,200 40,000 38,000
(1) Beginning in the second quarter of 2009, “Amortization of identi able intangible assets” is included in “Depreciation and amortization” in the consolidated
statements of earnings. Priorperiods have been reclassi ed to conform to the current presentation.
(2) Includes employees, consultants and temporary staff.
(3) Compensation and bene ts and non-compensation expenses related to consolidated entities held for investment purposes are included in their respective line
items in the consolidated statements of earnings. Consolidated entities held for investment purposes are entities that are held strictly for capital appreciation,
have a de ned exit strategy and are engaged in activities that are not closely related to our principal businesses.
2009 versus 2008. Operating expenses of $25.34billion
for 2009 increased 27% compared with 2008. Compensation
and bene ts expenses (including salaries, discretionary
compensation, amortization of equity awards and other items
such as payroll taxes, severance costs and bene ts) of
$16.19billion were higher compared with 2008, due to higher
net revenues. Our ratio of compensation and bene ts to net
revenues for 2009 was 35.8%, down from 48.0% (excluding
severance costs of approximately $275million in the fourth
quarter of 2008) for 2008. In 2009, compensation was
reduced by $500million to fund a charitable contribution
to Goldman Sachs Gives, our donor-advised fund. Total
staff decreased 2% during 2009. Total staff including
consolidated entities held for investment purposes decreased
5% during2009.
Non-compensation expenses of $9.15billion for 2009
increased 2% compared with 2008. The increase compared
with 2008 re ected the impact of charitable contributions
ofapproximately $850million (included in other expenses)
during 2009, primarily including $310million to The
Goldman Sachs Foundation and $500million to Goldman
Sachs Gives. Compensation was reduced to fund the charitable
contribution to Goldman Sachs Gives. The focus for this
$500million contribution to Goldman Sachs Gives is on those
areas that have proven to be fundamental to creating jobs
and economic growth, building and stabilizing communities,
honoring service and veterans and increasing educational
opportunities. We will ask our participating managing
directors to make recommendations regarding potential
charitable recipients for this contribution. Depreciation and
amortization expenses also increased compared with 2008
and included real estate impairment charges of approximately
Goldman Sachs 2009 Annual Report
51
Management’s Discussion and Analysis