Goldman Sachs Chiefs Give Up Bonuses: Last Year Blankfein Took $70 Million

Goldman Sachs Group Inc., the firm that set a record for Wall Street pay last year, became the first U.S. bank to scrap 2008 bonuses for senior officers in the face of the worst financial crisis since the Great Depression.

Chief Executive Officer Lloyd Blankfein, 54, and six deputies told the New York-based bank's compensation committee yesterday that they would forgo the year-end awards, according to Goldman spokesman Lucas van Praag. Each of the executives receives a salary of $600,000; Blankfein's bonus last year was almost $70 million.

``They believe it's the right thing to do,'' van Praag said in a telephone interview. ``We can't ignore the fact that we are part of an industry that's directly associated with the ongoing economic distress.''

Read the whole story here.

Comments

[Rule Of Law]

Gee, I hope they have enough to feed their kids...

http://www.detnews.com/apps/pbcs.dll/article?AID=/20081117/NATION/811170427

http://www.miamiherald.com/news/5min/story/776295.html

Number of kids going hungry increasing
An Agriculture Department report said that the number of hungry children increased from 2006 to 2007.
BY MICHAEL J. SNIFFEN
Associated Press

WASHINGTON -- Some 691,000 children went hungry in America sometime in 2007, while close to one in eight Americans struggled to feed themselves adequately even before this year's sharp economic downtown, the Agriculture Department reported Monday.

[onalimb]

Crooks

[VOTER]

No one deserves a $70 million dollar BONUS even when things are going well for a company.

These CEOs only need to ask their employees.
Put it to a vote.
ENOUGH!

[schatsie]

No more bailouts without tax returns from the CEOs and BOARD OF DIRECTORS....Let them cough up the money other wise... Buffett is still sitting on 40 billion...

[meede]

It blows me away to know Paulson was CEO of Goldman Sachs. To hear the man speak -- he's incoherent so therefore how could he possibly have run a corp.

To hear the senior officers are giving up their 2008 bonuses -- I want to see the documents they signed agreeing to this as I bet you there is a term in there that the 2008 bonuses will be paid at a later date -- retroactively. I trust no one as this isn't an unusual thing to happen when you hear of cutbacks. Looks good on paper for that year and passifies the media and public but then the following year it gets paid as the company has fallen off the radar of the media and public.

[Haditup2here]

Forget the restrictions on the bailout. I want an FBI investigation.

[FreedomCorpse]

a bonus of $70 million:

1. $1.3 million a week
2. $260,000 a day
3. $33,653 an hour (mostly on golf courses, where the 'big' decisions are made)
4. $560 a minute
5. $9.35 a second

But, wait, there is an american flag flying behind them....so its all okay because they're 'patriotic'.

[Keith52]

How about the last five years of bonuses too?

[PhilipTaylor]

When you sense punishment is coming it is a good idea to back off!

We saw that in late June 2008 when Congress began the investigation into illegal leveraging of Crude Oil Prices. Prices dropped 25% in one month and have continued to drop 61% (from the $147 High to the 50's).

When people see prosecution as a real concern they BACK OFF! But without follow-up nothing changes in the long run!

[Samirah1368]

70 Million Dollar Bonus...OMG! I did not make the right decisions after I graduated from school.

[funkalicious]

``They believe it's the right thing to do,'' van Praag said in a telephone interview. ``We can't ignore the fact that we are part of an industry that's directly associated with the ongoing economic distress.''

Goldman's Blankthief was selling CDOs full of crap out of his front office and making bets against the crap in the back office. This guy should be hauled to prison by the short hairs not walking around cashing a pay check.

These idiots know we have all of their homes on google earth and someone has hacked the gps on their cell phones so to track their movements. Stealing more ie.. the bailout money would be detrimental to their well being..

[Topsailsman]

I have my pitchfork and torch standing next to the door. Map to the castle in my back pocket. Fired Up. Ready to Go.

[nomadicexpat]

the bailout money was forced on some of these banks, so other banks wouldnt feel stigmatized taking it. so you cant force JPM and Goldman into taking money and then say "well now that we own u this is how u must operate"

it is symbolic that goldman is cutting senior bonuses, but it is a good gesture.

it sounds like the people on this board would complain at all but a full closure of this and every investment firm. the problem i see is that we are letting sour grapes from people who have no understanding of this industry dictate policy

[DMcMillan]

I have found it hard to believe the reason for giving the nine banks $125 billion was to keep other banks from feeling stigmatized. Can you please explain how giving healthy banks money helps to fix the broken economy? (Remember the banks were not required to lend this money).

Is it prudent for Americans to foot the bill to keep the companies afloat that helped cause this economic meltdown? While other good businesses that had nothing to do with it are dropping like flies? If so, can you please provide reasoning as to why?

[nomadicexpat]

the banking system is built on faith .. if only certain banks took the money they would be identified as having problems .. this way everyone was recapitalized

[IllinoisTexan43]

Go to the thread about union workers and see how much hate people have for working folks who make 20.00 dollars a hour, but forget that these grossly overpaid execs are the root of the economic collapse.

[TrooAmerican]

And people are still complaining about middle class paid union workers being "rich" or "overcompensated" or being "lavished with benefits"..????
What kind of Republican Hate campaign has been going on against the Middle class that convinces so many people that a Union is the source of Bad Corporate management by the Big3, or criminal greed going on in the financial institution thats actually causing more cars Not to be bought???

[4everdem]

``They believe it's the right thing to do,'' van Praag said in a telephone interview. ``We can't ignore the fact that we are part of an industry that's directly associated with the ongoing economic distress.''


YOU THINK?

I want to know how many bottom level workers at Goldman got a 116 times their annual salary as a "bonus"? These executives belong in JAIL.

[Teadye]

Actually, if you what you mean by "bottom level workers" are the positions that are less prestigious, they may in fact get bonuses at that level or better. If you mean do they pay big bonuses to the worst screw ups, then they do not. Goldmann bonuses are based on your contribution to GS, not on your title or place in the pecking order.

I don't think you did your homework on this one. GS has a very enlightened and interesting corporate system that is quite different from the average US business model. They are also usually classified on the whole as politically Progressive and always have been.

[DMcMillan]

Yeah, very enlightened and interesting corporate system that is quite different from the average US business model:

http://www.huffingtonpost.com/2008/11/11/goldman-advises-bets-agai_n_142898.html

[4everdem]

Ok so you are saying that the average clerk who was making, lets say, $35,000 a year got a 4 million dollar bonus? (35,000 x 116)

I don't think so. Nice try at defending the greed though.

It is amazing to me that a 70 million dollar bonus on a sinking company could be defended by anyone. I have been an accountant for 10 years and I promise you in 2007 they knew they were in trouble.