Goldman Sachs has reported a 17% increase in banker pay, including bonuses, following a significant rise in profits during the second quarter. The firm spent $4.2bn on compensation and benefits for its 45,300 employees, up nearly a fifth from last year. This increase is attributed to improved operating performance, with profits surging 150% to $3bn in the second quarter. Investment bankers played a key role in guiding firms through a wave of mergers and takeovers, boosting business deals. The stronger economic outlook and potential interest rate cuts are driving demand for banking services. Additionally, Goldman will no longer be bound by a UK banker bonus cap, allowing for larger bonuses. This shift in pay structure reflects the bank's success and growth in global banking and markets.