Published in The Wall Street Journal, December 10, 2009
Goldman Sachs Group Inc. on Thursday said its top 30 executives won’t receive a cash bonus for 2009 as the Wall Street bank bows to public pressure about runaway compensation packages.
The move approved by Goldman’s board is an attempt to quell public criticism about multimillion-dollar bonus packages expected to be doled out this year. The firm’s 31,000 employees are on track to earn an average of more than $700,000 apiece this year, the most in its 136-year history.
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.