Top Goldman Execs Refuse Year-End Bonuses

Struggling Investment Bank's Leaders Say "It's The Right Thing To Do"

(AP)  Goldman Sachs Group Inc. CEO Lloyd Blankfein and six other top executives at the bank will not be receiving cash or stock bonuses for 2008, a spokesman said Sunday.

The decision was made by the seven executives themselves, said spokesman Lucas Van Praag, and approved Sunday by the Wall Street firm's compensation committee. The executives made the decision "because they think it's the right thing to do," Van Praag said.

The seven executives include Blankfein; Presidents and Co-Chief Operating Officers Jon Winkelried and Gary Cohn; Vice Chairmen John Weinberg, J. Michael Evans and Michael Sherwood; and Chief Financial Officer David Viniar.

They will receive no cash bonuses, no stock, and no options for 2008 - just their salaries, the spokesman said. Companies typically release compensation figures for top executives in the spring as part of their annual proxy statements.

Last year, Blankfein received total compensation of $54.0 million, according to calculations by The Associated Press - making him the 6th highest paid CEO at a Standard & Poor's 500 company in 2007. His salary that year was $600,000.

Goldman and Morgan Stanley were the only major U.S. investment banks left standing after the buyout of Bear Stearns Cos. by JPMorgan Chase & Co., the bankruptcy of Lehman Brothers Holdings Inc. and Merrill Lynch & Co.'s sale to Bank of America Corp.

Shortly after Lehman's collapse, Goldman and Morgan Stanley became bank holding companies - a move that subjects them to more oversight from the Federal Reserve, but that also gives them permanent and wider access to the central bank's lending programs.

Goldman's shares closed Friday at $66.73, down $3.26, and are down 69 percent since the start of the year. The firm is in the midst of cutting about 3,200 employees, or about 10 percent, of its staff worldwide.

[krescera]

These guys should be congratulated for seeing the light.Gandhi pleaded that businessmen like these should act as trustees for the society with a social conscience.Let us hope that some high-flying union executives too would follow this example.The media has been deafeningly silent on the union honchos.

[sorceress62]

Who needs to be compensated 54million dollars a year for doing their job. Furthermore, isn''t a salary of $600,000 more than enough to live on, if not then these people should try living paycheck to paycheck making $8.50 an hour and living in the northeast where you have to pay for oil at $3.00+ a gallon. Sorry but I cannot and do not feel badly that they are forfeiting their bonuses.

[au_fait]

sorceress62,you re correct in thinking that 54 million is too much to be compensated for their jobs. But you should recognize that they did not take a bonus. If only the executives at other firms were thought this way. The millions they could have received can now be used to keep jobs of those who make 8.50 hour or to create jobs.

[sorceress62]

They did not take the bonuses this year but they sure did in previous years..if all the execs out there would take a long hard look at how much money they really need to live on...and not take such astronomical bonuses perhaps the United States would not be in the situation it is in now!

[johnstossel]

Oh, no!!! Now they will have their Rolls Royces and minks repossesed. May I recommend a Sam''s Club membership. Give me a break!!!

[fharlass]

To the folks on Wall Street: It is about time some of these greedy a$$hole$ did the right thing. Greed Greed Greed. That is all Wall Street is about. Some is good. If it is your reason for living-it is bad.

[fharlass]

Now what about the rest of you greedy ******$-like at Wells Fargo, Citigroup, etc etc, the hedge fund managers-there is group of greed

[hologram5]

Finally, a step into morality for these rich cats...

[afmca]

If we taxed executive bonuses at 100 percent for all companies taking bail-out money; they could make them as large as they would want and the money would go right back to the people it belongs to ... the American taxpayer.

[jntlw-2009]

I applaud these executives for doing what is obviously the correct thing to do - forego the bonuses. Thank you for allowing common sense to rule.

[vsg4]

How about foregoing without health insurance for all of these financial executives apart from cutting all of their bonuses. Let them pay from their pocket health care costs, those costly gym memberships & golf clubs too.

[tejasdemo]

awwwwww...that''s sweet of them

[Gary Kempf]

Does this mean there is hope for mankind? No, they just wait a year and get to double the bonuses.

[bobnjersey]

[I applaud these executives for doing what is obviously the correct thing to do - forego the bonuses. Thank you for allowing common sense to rule.]
[Posted by jntlw at 10:04 AM : Nov 17, 2008]

i second that ... there are apparently some that have a conscience.

i wonder if they can deduct that as a loss ... against any other gains they might have otherwise.

[timetrips1]

It shows that some of the executives have some sense. I applaud their actions and they should be held up as role models for others in the industry. They should get their bounuses in the good times when the company is doing well and not when the company under-performs.

[mandylou4u]

why does one person need 54 million dollars in one year when you have people out here that actually work and run the world for 35 to 30 thousand a year? The money should start going to those who work for a living, not sit around and tell other people what to do. 54 million just seems like too much for one person. I do thank them for not being too greedy this year. Us real tax payers can barely handle any more.

[pete_in_az]

I guess if I received 54 million in compensation the year before, who knows what the stock portion is worth but even at 1/3 your rich, I might forego a bonus while others are getting pinkslipped. Otherwise someone might kill you.

[gop_will_win]

Now lets see the liberal workers refuse their paychecks.

[vsg4]

"Now lets see the liberal workers refuse their paychecks.

Posted by gop_will_win at 01:43 PM : Nov 17, 2008"

Looks like you have forgotten about American Airlines machinists, on board staff agreed for a pay cuts, top executes are given multimillion dollars into their retirement account a few years ago.

[gop_will_win]

Looks like you have forgotten about American Airlines machinists, on board staff agreed for a pay cuts, top executes are given multimillion dollars into their retirement account a few years ago.


--------------------------------------------------------------------------------

Posted by vsg4
=================
Thats what America is supposed to be.

[cusefan21]

Ohh how so mice of them since they made there multi-millions last year and got a nice bank account going freakin crooks

[colt8881]

I think that they have plenty of $$$$$ in a savings account and dont need more cash to play with.

Greedy _____________________.

[brianp55]

If my boss paid me several million dollars during the current year, I would be able to "altruistically" sacrifice my year-end bonus as well. This is all PR. Still, cynicism aside, it''s at least a step in the right direction. BTW...my "bonus" consists of getting paid for my unused vacation time. I plan to buy my kids an air hockey table with it. Should cover it.

[karenbe111]

What a pleasant surprise...now if they would voluntarily cut their outrageous salaries by at least 2/3rds, and actually pay taxes on what they receive not only in salary but the value of stock options...who knows...

[frankistage]

Pay me $54 mil in one year and I''ll forego bonuses for the balance of my working career. Promise.

[jclark7613]

54,000,000.00 that''s one of the reasons that there in so much trouble. That just doesn''t make sense to me to pay a excutive that much money. The extra 53 mill he received last year could have been bonus for the whole company down to the cleaning person for a job well done last year. It took a team not one man to make a profit.

[yeswedid]

The executives made the decision "because they think it''s the right thing to do," Van Praag said.
-------------------------------------------------
Since when we have these crooks been morally-minded? They are still nothing but GREEDY A$$HOLES.

[ddaryl1]

I won''t be happy until we have major regulationon white collar pay, bonuses, and perks.

if the stock price tanks you get nothing, If you make billions you get a resonable increase. It is more improtant to reward the workers of these compnaies then a few uppity ups.

All goldman Sachs is trying to do is conivnce themajority that we don''t need major white collar pay / incentive regulation, so when times are good they can go back to raping us.

but at least they did for go it this year unlike AIG scum

[ddaryl1]

"Now lets see the liberal workers refuse their paychecks.

Posted by gop_will_win at 01:43 PM : Nov 17, 2008"
-----------------------------------------------------

So you want the worker making $30 K - $70K and barely surving to give up their money.... That''s laughable.

these white collar scum are grossly over paid, and I think we should raifd their personal bank accounts to pay off the national debt...

[lloydbest1]

The concept of reward for merit is a sound one and should be integral to any business practise.
But $54 mil!? I don''t think so. Even the $600000 salary Blankfein got was way too much. No matter how complex the job is of a top executive officer NO job is worth that much. Apart from the moral considerations of earning (or collecting, if you''re cynical) that much of an annual salary, it is indecently unfair to pay anyone that much when minimum wages are still less than $9.00 per hour. No amount of merit justifies that much of an income gap. None!
Still, Blankfein didn''t have to refuse his bonus. By company policy he was "entitled" to it. Refusing all that extra cash was a decent gesture on his part - and a wise one.
Now it is behooves the lower and middle income workers; corporate stockholders and legislators to pressure others who are not so public minded to give up their bonuses and even consider reducing their salaries. You can still have a good living standard range with a far smaller income separation between the "have mosts" and the "have leasts". You can still be rich with a far smaller chunck of change.
Anyone who has a lifestyle that requires half mil or more per year to sustain, especially in the face of the grinding poverty seen here and elsewhere, has something seriously wrong with his or her values.

[antoniof123]

Last year, Blankfein received total compensation of $54.0 million, according to calculations by The Associated Press - making him the 6th highest paid CEO at a Standard & Poor''s 500 company in 2007. His salary that year was $600,000.

This guy is a sleeze along with the rest of them let''s put this one guys bonus and salary into prespective.

54,000,000 / 3,200 laid off comes to = 16,875 that is only one exec. They are seven (7) of them total so that is somewhere in the range of 350,000,000 / 3,200 laid off comes to = 109,375 do any of you make this much or should I say how many of you make this much in a year.

[whitemale08]

No bonuses paid to the CEOs and top management is just a ''side-issue''....

THEY FINANCIAL SYSTEM IS DEAD FOLKS!!!!!!

THE ERA OF ''STRUCTURED-FINANCE AND DERIVATIVE-SWAPS'' HAS COMPLETELY DIED!!!!!!!

What must be done is to bury the BLOOD-SUCKING PARASITES who created this ''globalization nonsense'' by bringing the entire private Federal Reserve System into receivership so Congress can conduct bankruptcy proceedings.

If we don''t do that NOW then civilization will decompose along side the already dead financial corpse.

[bushie3]

I bet the CEO''s of the Oil Compays will not turn down there bonus. Its hard work raping the american people, and keeping the 19 mill tax deduction. how do these people sleep at night.

[cheetah-man7]

Aw... they gave up their bonuses.. Gee, should I feel sorry for them? Should we hold a parade in their honor, or give them a prize for their big sacrifice? They should be ashamed at themselves for their greed and certainly don''t deserve anyone''s congratulations or sympathy for foregoing their outrageous bonuses.

[ender18-2009]

Put them in jail.

[bckrd1]

I am sure it was not altruism that motivated them to this decision. It was fear of being tarred and feathered and possibly quarted by an angry mob. I for one have had enough. 99.99% of these CEO''s are EMPLOYEES and should be paid accordingly. If the company does well then everyone in that company should share in the prosperity since the CEO etc did not create the results on their own. They had help. It has been far too one sided in the benefits and it needs to stop.

[dvet1]

CEO''S and the OIL INDUSTRIES should pool together and pay every AMERICAN tax payer $5000 for stealing money from us over the past few years

[frankie2fing]

Now lets see the liberal workers refuse their paychecks.

Posted by gop_will_win at 01:43 PM : Nov 17, 2008"

You know, just when I thought you have said the most ignorant thing possible, you keep talking. The working class HAS given up their paycheck - to scumbags like Goldman Sachs, Exxon and all the other corporate theives.
BTW: How is that campaign going. GOP still going to win?

[lancearmstng]

Yea, OFF WITH THEIR HEADS, BOOOO successful people that spent their entire lives building up a company and today pay more in taxes and give more to charity then the masses combined.

Anyone who class Blankfein a "sleeze" is just rolling with the lynch mob and has a hint of jealousy. He made $56 million in bonus last year. Does anyone mention that more than $45 million of that was given to charities and he''s a lead donor for inner city schools all throughout the country?

What a scumbag.

[lochlan-2009]

Struggling Investment Bank''s Leaders Say "It''s The Right Thing To Do"

The right thing to do is to put these criminals in jail. But, this is America so we know that''s not happening.

[bobnjersey]

[If we don''''t do that NOW then civilization will decompose along side the already dead financial corpse.]
[Posted by whitemale08 at 04:15 PM : Nov 17, 2008]

if you were reading a quarterly summary on the financial industry ... and it was written like they write all their summaries ... it would say something like:

''despite the difficult conditions being experienced under the current downturn ... we expect a more positive outlook in the coming period ... which is likely to translate into positive returns in the future''

[lancearmstng]

"CEO''''S and the OIL INDUSTRIES should pool together and pay every AMERICAN tax payer $5000 for stealing money from us over the past few years "

Oh, and be careful, if the public keeps pushing for these big firms to pay back and give up all their revenue we''re going to see these companies move mighty fast overseas. If you think Exxon wouldn''t happily domicile themselves in Mexico or in Grand Cayman and operate as a foreign entity then you are just plain silly.

Countries would gladly take the taxes, however minimal they are, from firms like Exxon and Exxon would be just fine not being crucified by a public that was built by capitalism but now has been swallowed by irresponsible credit-card toting socialists.

First the conglomerates (that provide domestic jobs) and then the affluent who pay the majority of taxes to begin with will move overseas. It''ll be the United States of poor people. No one left to blame.

[lochlan-2009]

He made $56 million in bonus last year. Does anyone mention that more than $45 million of that was given to charities and he''''s a lead donor for inner city schools all throughout the country?

What a scumbag.


Posted by LanceArmStng


Only kept eleven million of his bonus for the year, eh? What a saint. With these people it''s all about more money, who cares how. Did he get tax right-offs, or was it something else? You know these people don''t do anything for nothing.

[lochlan-2009]

"Oh, and be careful, if the public keeps pushing for these big firms to pay back and give up all their revenue we''''re going to see these companies move mighty fast overseas."

Don''t worry, we can tax them going out the door (or seize their assets), and tax them for every product they bring into this country made on foreign soil, too.

[lloydbest1]

"...He made $56 million in bonus last year. Does anyone mention that more than $45 million of that was given to charities and he''''s a lead donor for inner city schools all throughout the country?"
Posted by LanceArmStng at 05:25 PM : Nov 17, 2008

Sorry, that doesn''t cut it.
There is NO defense for that kind of income. I do not care how he got it nor do I care what he did with it. I could give a rat''s rear end how much he "deserved" it and it is irrelevant to me how may lives he''s improved with his "charity". Note, please, he still had nearly $11 million left over. So any platitudes he recieves because he distrubited SOME of that wealth are totally without merit as far as I am concerned. Why didn''t he donate all of his bonus to charity? Why, in fact, did he not, additionally, donate half of his enormous base salary to causes that benefit the public interest?
I do not mean to rag on anyone and I also do not believe Mr. Blankfein should be paid at the same level you and I are. He DOES derserve more. But $600000 Plus a $54 million bonus? C''mon - no way in h&ll!

[steamed2]

Oh. Brother, a few over-paid CEO''s finally start to worry that the U.S.taxpayer may finally wake up to what the financial lobbies have been doing the past 10-15 years, and they''re hero''s? Let them apply for sainthood.
The real problem is that every sitting member of the House and Senate who has been in office for the last ten years has totally abdicated his responsibilities to taxpayers. Its clear that Congress has knowingly misled us and assisted in the malfeasance ongoing in the financial sector of America today. If you would like some interesting info, and how to do so too, check out http://www.peak.org/~LW584

[barbaraf4]

So why do the executives have to publish this information? This should be automatic and without comment. Integrity....don''t leave home without it.

[erasmus81]

So why do the executives have to publish this information? This should be automatic and without comment. Integrity....don''''t leave home without it.

Posted by barbaraf4 at 07:28 PM : Nov 17, 2008

They are probably hoping that others will follow their example.

[telluright]

Why don''t they make the chief executives that have been in that position for the past 2-3 years pay some of their bonuses back if not all of it. That would be a stipulation to get the bailout money if it were up to me. If all that time they were loosing money why should have have earned 600,000 in salary and millions in stocks and bonuses. Just how much money do you need to live off of? Try living off what the average american lives off everyday.

[cbsblogger]

They should have to give back their bonuses for the last several years as they were obviously a smoke screen based upon either falsified or overly optimistic results. The companies weren''t earning what they said they were earning.