The following article is from the Dow Jones News. With pay like that, who needs a bonus?
Goldman Sachs Group Inc. (GS) said its top 30 executives won’t receive a cash bonus for 2009 as the Wall Street bank responds to public pressure about runaway compensation packages.
The move approved by Goldman’s board is an attempt to quell public criticism about multimillion-dollar bonus packages expected to be doled out this year. The firm’s 31,000 employees are on track to earn an average of more than $700,000 apiece this year, the most in its history. (Emphasis added)
Investors will also get a say on pay: Goldman granted shareholders an advisory vote on the company’s compensation policies. The firm has been in private discussions with major investors during the past several weeks in an effort to ward off backlash over its high-flying compensation pool.
One complaint is that bankers shouldn’t reap record compensation packages just a year after a financial crisis that required a massive government rescue of Wall Street. Goldman has set aside about $17 billion so far this year for pay and bonuses.