Goldman Sachs could slash CEO bonus amid pressure

[babylonsister]

Goldman Sachs could slash CEO bonus amid pressure
Steve Eder
NEW YORK
Tue Feb 2, 2010 8:25am EST


NEW YORK (Reuters) - Goldman Sachs Group Inc (GS.N) is likely to slash its chief executive's bonus from the record $67.9 million he got two years ago, but Lloyd Blankfein's pay package could still fuel criticism the bank has been "tone deaf" in its approach to the financial crisis.

Efforts to deflect criticism and keep regulators at bay has already prompted Goldman to change its bonus strategy, curbing compensation in the fourth quarter of 2009 and eliminating cash bonuses for top managers, instead paying them in stock.

But Goldman still may face a storm of criticism when it announces the bonuses of its top executives even as it seeks to trim the headline numbers after a year of record profits. The announcement could come at any time.

"They have made a number of moves to try to ameliorate the issues," said Alan Johnson, a Wall Street compensation consultant. "I would be shocked if it didn't have an impact on his and everybody else's total."

more...

http://www.reuters.com/article/idUSTRE6112LE20100202

[ellenfl]

1. they'll just wait until the brou-ha-ha dies down and take the $ then.

long term measures need to be instituted . . . and i'm not holding my breath.

ellen fl

[Rosa Luxemburg]

2. slashing to them will probably mean taking $50 less

they should donate their bonuses to Haiti

[rocktivity]

3. I'd still like an explanation

as to how a company that loses SO much money they NEED a goverment mailout gives out bonuses--I would think that pink slips would be more appropriate.

:eyes:
rocktivity

[Statistical]

5. Didn't you hear GS had a record profit year in 2009 even when account for repaying TARP.

So if you want to be a cynic. They got to take a huge risk, failed, then parlayed that into a govt bailout which cost them about $50 million in interest that they turned around and made $6 BILLION dollars.

As a pure cynic I would say he "earned" his bonus. I mean he turned a collasal failure into a free ride into $6 BILLION in profits all on the backs of taxpayers

Pretty amazing stuff. Please excuse me I need to go puke now.

[Vinnie From Indy]

4. LOL!!!!!!!!!!!!!!!!

One thing is certain, Golman can buy the best of the best PR advice out there. One need not even be marginally intelligent, aware or sober to know that in this economic climate and after the financial debacle of the last years that paying Goldman execs in the routine manner will not fly with the public very well. The amusing aspect of this story is that it implies that Blankfein and the rest will get LESS money. That is not even a remote possibility in my mind. Goldman execs will still get paid. Whether it is called something instead of a bonus or it is delayed until next year, these guys will get paid. They are well educated, white collar GLOBAL gangsters. People may forget that the folks that rise to the top of companies like Goldman are usually the most able and ruthless gangsters. Blankfein and the rest will still get their loot. It doesn't matter to them in the least if it comes from the taxpayer or directly from the pocketbooks of little old ladies.