Goldman Blinks on Bonuses

by  

Print | No Comments | Share/Save

Published in The Wall Street Journal December 10, 2009 by Susanne Craig
 
Goldman Sachs Group Inc., moving to defuse public outrage over its pay, said its top 30 executives will receive no cash bonuses for 2009 despite the firm’s expected record profits.
Thursday’s announcement was the biggest concession yet by Goldman in response to the criticism of its compensation barely a year after the New York company received $10 billion in taxpayer-funded aid. Instead of a mix of cash and stock, Chairman and Chief Executive Lloyd C. Blankfein and the rest of Goldman’s management committee will be awarded only stock that can’t be sold for five years.
But the changes are only for 2009 and don’t necessarily affect more than 31,000 other Goldman employees, consultants and temporary workers. That group includes traders and other employees who are fueling most of this year’s revenue and profit surge, putting them in line for sharply higher bonuses early next year. In addition, Goldman gave no indication in its announcement that it will buckle to pressure to rein in overall pay levels.

Post a Comment