No Year-End Bonuses for Goldman Sachs Execs
Goldman Sachs has had a record year in terms of employee earnings — The Wall Street Journal says Goldman’s 31,000 worker bees brought in an average of more than $700,000 each in 2009 — and that would be better news for the firm if it hadn’t been on the receiving end of major federal funding from last year’s bailout. Hence the public outcry and criticism in the media about top Goldman executives potentially getting the hand-over-fist treatment in the form of hefty year-end bonus checks, which it turns out those 30 execs won’t be receiving after all. –KA
The Wall Street Journal:
Investors will also get a say on pay: Goldman said shareholders will get an advisory vote on the company’s compensation policies. The firm has been in private discussions with major investors during the past several weeks in an effort to ward off backlash over its record compensation pool.
Lloyd Blankfein, Goldman’s chairman and chief executive, has given a number of speeches about compensation since the company’s annual meeting earlier this year. The changes to compensation of its 30-person management committee are part of his plan to better align payouts with long-term performance and the interests of the firm.
The investment bank, considered to be the most profitable in Wall Street history, saw its third-quarter profit soar as rallying equity markets led to trading gains and strong investment performance. The firm also set aside $5.35 billion for benefits and compensation during the quarter, putting bonuses on track to set a record this year.