Goldman Sachs CEO's "Modest" $9 Million Stock-Based Bonus

After a record earnings year—and rumors of a $100 million bonus—Goldman Sachs CEO Lloyd Blankfein is receiving a $9 million bonus in deferred stock for 2009. Some on Wall Street think it's a "sign of restraint"—the Wall Street Journal characterizes it as Goldman "bowing" to criticism about executive pay.

A compensation consultant told the WSJ that Blankfein's bonus "is certainly significantly lower than people anticipated," but said people would still be pissed at him and Goldman Sachs, "If you are outside looking in, they still aren't beloved, because they likely eating your lunch and breakfast." Indeed: Vermont Congressman Peter Welch (D) said, "It is only in their world where you can come within an eyelash of destroying the economy and then reward yourself with what you call a 'modest' $9 million pay day."

Blankfein received a $68 million bonus in 2007 and many had expected that his 2009 reward would top that, since 2009 was Goldman Sachs' most profitable ever. Blankfein had acknowledged some responsibility of his company's involvement in the global economic meltdown last year, but he also raised ire when saying his firm was doing "God's work." Now Blankfein's "small" bonus is being compared to JPMorgan CEO Jamie Dimon's, which is around $17 million (about $8 million in stock, no cash).

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By Jen Chung in News on February 6, 2010 8:08 AM

Comments [rss]

Greenpoint60

The board would not pay the guy the bonus unless he was adding value to the firm. He must have no life, Goldman has him on call 24/7-365. His job is to insure that the folks in Bombay do not eat their lunch. If they paid him a mere 500K he would say “fuck that, I will stay in Florida and cruise on my yacht.”

bullishnyc

"...been given control of the US Treasury." Where the fuck do you get this information? You know, you'd probably benefit from reading something other than Gothamist or the Ntl Enquirer.

ides_of_march

Look at all the GS CEO's that are appointed treasurer then promptly start doing the bidding of GS. It's at best an incestuous relationship.

bullishnyc

ALL the GS CEO's? You mean Paulson. Sorry, but all those conspiracy theories are crap. Again, if you get well informed you'll see that they don't hold water.

Mr. Shankly

Not a CEO but Rubin counts.

bullishnyc

"...been given control of the treasury." Where the fuck do you get this information? You know, you'd probably benefit from reading something other than Gothamist or the Ntl Enquirer.

Oxford

Glad to see there's some common sense comments. I am awfully tired the tirades of populist jealousy over the past years. GS did not "break the economy" -- in fact far from it, as they adroitly navigated the crisis and turned out record profits as their peers toppled over. Blankfein is one of the most successful CEOs of this generation, and the $9mm really is restraint compared to the amount of money his firm made, or other executives make, let alone the staggering sums of the hedge fund industry.

Mr. Shankly

Adroitly navigated? Is that a new term for 'graft'?

ides_of_march

GS is making so much money since they have for all intents and purposes, been given control of the US Treasury. And both parties are to blame.

Mordicai

This is not the real problem, as others have said-- there are much bigger problems here. Still! I can't help but agree with the French Revolutionaries in the audience-- these dudes want to set themselves up as aristocracy, they should worry that the populace will chop their heads off. It is the American Way.

Mr. Shankly

I'd pay to see that. Cash money. It's either that or we may be heating our homes with it.

goodcow

That there is the sound of the NYC and NYS deficits growing larger.

ides_of_march

The congressman from Vermont is in no position to be lecturing anyone here. Congress has flushed more taxpayer money down the toilet than any one private company could ever dream of. They also get to reward their own incompetence and corruption by voting themselves pay raises. Let's not also forget their lavish perks, pensions and bribes from lobbyists.

The government has to vilify the private sector to deflect attention from its own horrendous record.

nicemarmot

Tired of this populist crap. The problem here is Goldman's influence on the government, not the size of their bonuses. As long as they are a private company they are entitled to waste their money any way they goddamn please. The real question is, is Goldman really a private company any more?