Goldman Taking ‘Hard Look’ at Pay, Board Member Says


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Published in Bloomberg December 9, 2009 by Erik Schatzker and Michael J. Moore

Goldman Sachs Group Inc., the most profitable firm in Wall Street history, is taking a “very hard look” at whether to pay people less because of public outrage over bonuses, board member William George said.
Goldman Sachs set aside 47 percent of revenue for compensation and benefits through the third quarter, enough to pay each employee more than $500,000 for nine month’s work. George, a professor at Harvard Business School who sits on the New York-based bank’s compensation committee, said the board may lower the percentage this year and in the future.
“I think that’s up to the compensation committee to decide, but I think they are going to take a very hard look at it,” George said in an interview today on Bloomberg Television. “There is so much anger out there and I’m not quite sure how to ameliorate that, other than to moderate things and to recognize that Goldman and every other firm benefited from the actions of the Federal Reserve Board and the Treasury Department.”

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