Now Wall Street is reeling in the fabulous extras that it lavished on employees over the last couple of years. Why not? With the New Economy fizzling, banks no longer have to worry about their staffs defecting.
Some changes are small but symbolic. Goldman Sachs has stopped supplying fresh fruit, a Silicon Valley-style amenity that the firm began offering last May. And bananas aren’t the only perk getting mashed. In January U.S. equity research director Greg Ostroff sent his department a voice mail announcing a 10 percent reduction in non-compensation-related costs. Among the moves: Car service was rolled back from 8:00 p.m. to 9:00 p.m., and, says a source, free birthday cakes for everyone, including the department’s analysts, have been eliminated. “Goldman takes a disciplined approach to expenses and from time to time reinforces important guidelines,” says a company spokesman, who would not confirm the cake-cutting.
Goldman’s perk-trimming has yet to spread. Some employees at Merrill Lynch are wondering whether the new gym they were promised , slated for completion last December , might fall victim to budget cuts. Not so, says a spokesman. The gym will open this month, complete with spa services, personal trainers and classes in yoga, Pilates and kick-boxing, among other activities. Employees have been forced to meet with personal trainers to set fitness goals. Those who miss their appointments are kicked off the list of 2,000 eligible gym members.
Merrill bankers can use the gym time. They still get company birthday cakes.
