Remember how, during the Time Of The Pitchforks, Lloyd Blankfein and other high-ranking Goldman execs couldn’t collect the money they were supposed to receive, as it would’ve resulted in The People shoving nails through their collective foot? They’re getting that money now.
Goldman Sachs Group Inc. Chief Executive Officer Lloyd C. Blankfein and his top deputies will collect about $111.3 million in stock next month in a delayed payoff from last year and their record-setting 2007 bonuses. Blankfein, 56, is poised to receive about $24.3 million in January, based on yesterday’s share price, while President Gary D. Cohn, 50, will get about $24 million, company filings show. The payouts, just a portion of the $67.9 million bonus awarded to Blankfein for 2007 and the $66.9 million paid to Cohn, reflect a 24 percent decline in the stock’s value since it was granted at $218.86.
Since the 2008 credit crisis wiped out competitors such as Lehman Brothers Holdings Inc. and led to unprecedented government assistance to financial institutions, regulators have encouraged banks to pay senior employees with deferred stock and claw-back payouts if trading strategies backfire. Blankfein and Cohn, who received cash awards of $27 million and $26.6 million respectively for 2007, didn’t get any bonuses for 2008 and received only restricted stock for 2009. The New York-based firm announced on Dec. 10, 2009, that all 30 members of its management committee would receive only restricted stock for their year-end bonuses. The company hasn’t made a similar announcement this year.
Despite the fact that the big payoffs are coming in stock, it’s expected that some people will still be giving themselves hernias.
“The public will be outraged,” Jeanne Branthover, a managing director at recruitment firm Boyden Global Executive Search in New York said. “Wall Streeters will be excited that there’s still money being made on Wall Street, and there’s still a reason to be working so hard.”