Goldman pays top execs lower bonuses
By Steve Eder |
February 8, 2010, Monday
|
Print Edition
Print Edition
IN a sign it is concerned about Main Street anger over bankers' compensation, Goldman Sachs Group Inc decided to give its CEO Lloyd Blankfein and other top executives lower bonuses than many had expected.
Goldman, which reported a record profit for 2009, will pay the executives bonuses in stock worth US$9 million each, far below what they got in the previous record profit year of 2007, the bank said last Friday. Blankfein received US$67.9 million for that year.
The bonus, which was less than the roughly US$16 million that rival bank JPMorgan CEO Jamie Dimon was rewarded with earlier in the day, was far below the US$100 million that at least one British newspaper had predicted.
The decision follows months of criticism of Goldman, partly because of expectations that its soaring profits would lead to massive bonuses just over a year after it was aided by the government through bailout funds and other financial support.
Blankfein's bonus is such that he will not even be among the highest paid people at Goldman, the firm he has run since 2006. Star traders and bankers within Goldman's ranks will almost certainly be receiving more.
"He is going to have a lot of people two levels below him who are making more than he does," said Alan Johnson, a Wall Street compensation consultant.
The firm made it clear that external pressures had contributed to the decision.
"The firm produced very good results for 2009, but the environment is very difficult and the board was mindful of that difficult environment in making decisions about executive compensation," a Goldman spokesman said.
Goldman, which reported a record profit for 2009, will pay the executives bonuses in stock worth US$9 million each, far below what they got in the previous record profit year of 2007, the bank said last Friday. Blankfein received US$67.9 million for that year.
The bonus, which was less than the roughly US$16 million that rival bank JPMorgan CEO Jamie Dimon was rewarded with earlier in the day, was far below the US$100 million that at least one British newspaper had predicted.
The decision follows months of criticism of Goldman, partly because of expectations that its soaring profits would lead to massive bonuses just over a year after it was aided by the government through bailout funds and other financial support.
Blankfein's bonus is such that he will not even be among the highest paid people at Goldman, the firm he has run since 2006. Star traders and bankers within Goldman's ranks will almost certainly be receiving more.
"He is going to have a lot of people two levels below him who are making more than he does," said Alan Johnson, a Wall Street compensation consultant.
The firm made it clear that external pressures had contributed to the decision.
"The firm produced very good results for 2009, but the environment is very difficult and the board was mindful of that difficult environment in making decisions about executive compensation," a Goldman spokesman said.
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