Goldman Sachs Employee Pay Will Be `Dramatically' Hit by Crisis, Palm Says

[marmar]

Goldman's Pay Will Be `Dramatically' Hit by Crisis, Palm Says

By Ian Katz

Nov. 13 (Bloomberg) -- Goldman Sachs Group Inc.'s payouts to employees will be ``dramatically affected'' by the financial turmoil this year and the firm's results, a company executive said today.

``Employee compensation will be dramatically affected by changes in the overall economic and financial environment and our performance for the full year,'' Gregory Palm, a general counsel at the New York-based investment bank, said today in prepared testimony for a hearing before U.S. Senate Banking Chairman Christopher Dodd.

Palm said the firm's bonuses would be paid out of earnings for the year, and federal bailout funds provided under the so- called Troubled Asset Relief Program would be not be used for the awards.

Employee pay ``certainly will not increase as a result of receiving TARP funds,'' Palm said, noting that decisions on compensation won't be made until the end of the year. Analysts estimate the firm will report a fourth-quarter loss.

Goldman, which converted from the largest U.S. securities firm into a bank holding company in September, is one of nine U.S. banks that received a total of $125 billion under TARP. Goldman received $10 billion.


http://www.bloomberg.com/apps/news?pid=20601087&sid=avw9TxHBZdkQ&refer=home

[closeupready]

1. Yes, it will be dramatically higher, I'm sure, in one form or another.

n/t

[JHB]

2. In other word, "Only the People Worth Speaking Of" get bonuses this year (and big ones)...

..."as for you assorted minions, flunkies, and other riff-raff in the middle levels, here's a turkey! Happy Thanksgiving! As for the hired help, they were paid for their time. What more could they want?"