Today, Goldman Sachs (GS) reported 2009 net revenues of $45,000,000,000 (that's 45 billion). That is a pretty impressive number.
Even better, the company posted net profit of $13,000,000,000 (that's 13 billion) in 2009. To put it in perspective, that's a net profit margin of 28.8% which is pretty much as good as it gets in business. Any business owner who can generate this level of profit is exceptionally happy. Usually, business people are pretty happy with a 10% profit margin.
Everyone knows that GS has come under fire for its excessive levels of compensation. In 2007 the company paid out $20 billion in compensation to 35,200 employees - around $615,000 per employee. In 2009, a relatively paltry $16 billion was paid out.
To defray criticism this time around, the company announced a contribution of $500,0000,000 (500 million) to its charitable arm - Goldman Sachs Gives. Now $500 million is a large sum of money to give to charity -pretty impressive, right? Comes out to 1.1% of net revenues.
To put things in perspective, Aura Collective (our company) donates 15% of net revenues to charity. Net revenues is top line revenue less discounts to customers. Simple, easy to understand net revenues. We don't donate "a portion of profit". And we donate to our customer's nominated charity (any one of the 85,000 registered charities in Canada).
If GS were to follow our lead, and we wish they would, the company would have made a donation of $6,750,000,000 to charity. That's $6.75 billion to charity in one year.
Come on, Goldman Sachs. You can do better than 1.1% of revenues to charity. As one company, you guys can make an enormous difference to the world.
We like to think we make a difference, but you guys KNOW you can make a difference.
Be a true leader in the world. Donate a percentage of net revenue.
