Goldman Sachs announcement that it had set aside nearly 50% of its revenues for compensation caused more than raised eyebrows. “Bonuses are back” ran the headlines and out came the bank bashers.

Net result – Dealbook reports that analysts at Pali Capital say that Goldman will set aside less money for compensation in the second half of the year, leaving more on the table for shareholders. So have the baying mob caused the great Goldman to capitualte? Not necessarily Pali also expects Goldman’s revenues will jump as merger activity rebounds…

Leaving a lot more money for profits. The analysts calculate that if Goldman pays out about 28 percent of its fourth-quarter revenue to employees, the firm’s earnings per share would skyrocket from the average estimate of about $4.34 a share to $6.37 a share.

Given that most Goldman employees hold GS shares they will benefit either way. Nice.