Former Goldman Sachs trader Deeb Salem was awarded $8.25 million in 2010. He wanted $13 million and continues to fight for the extra 5 mill four years later because 1) While at Goldman, he was the Michael Jordan of investment professionals in the mortgage industry and had to fend off highly appealing offers from other firms on a near daily basis and 2) He had told his mother to expect 13.

Salem said in an arbitration hearing that he was led to believe that his 2010 bonus would be $13 million, down from a $15 million award for 2009 when he was paid more than Chief Executive Officer Lloyd C. Blankfein. Instead, Salem said his bonus was unfairly docked because of a written warning he received about his 2007 self-evaluation. Salem, 35, said the $8.25 million bonus for 2010 didn’t reflect his contributions, while Goldman Sachs argued he was aware that the firm could pay him whatever it wished and that the company considered his conduct in determining compensation. Salem said promises from executives kept him around for another year before a $3 million bonus led him to jump to a hedge fund. “Let’s be very clear: I was one of the most sought-after investment professionals in the mortgage industry,” Salem said during the Feb. 25 hearing. “I had the opportunity throughout the course of my career and throughout — from that day, from almost every month that I was at Goldman, to leave for other opportunities.” […]

In January 2011, Salem told his mother, who was staying with him because her house had burned down on Christmas, that he expected at least $13 million for 2010, according to the transcript. That was based on the fact that his mortgage-trading desk generated about the same amount of revenue in 2010 as it did the previous year and that Justin Gmelich, a credit trading executive, told him at a cocktail hour that he was a “steal” at $15 million, Salem said. Salem received an $8.25 million bonus after getting the warning for “extremely poor judgment” in discussing a short squeeze in his self-evaluation. Goldman Sachs executives told him the firm would make it up to him and encouraged him to stay, he said. That came after President Gary Cohn persuaded him to remain in 2008 rather than leave with colleague Josh Birnbaum to start a hedge fund, Salem said. No promises were made, Andrew Frackman, a lawyer at O’Melveny & Myers LLP who represented Goldman Sachs, said at the hearing.

Ex-Goldman Trader Says Bonus Cut to $8.25 Million Unfair [Bloomberg]

Earlier: Bonus Watch ’10-12: The Self-Described Michael Jordan Of Goldman Sachs

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Comments (16)

  1. Posted by Meagain | June 19, 2014 at 2:01 PM

    at 8 mil he was totally f#cked

  2. Posted by @Apollotrader | June 19, 2014 at 2:21 PM

    I would pay to read the self eval.

  3. Posted by guest | June 19, 2014 at 2:31 PM

    pretty sure the conclusion went something like:

    "So that is why I am better than everyone in the world. Kiss my ass and suck my dick…everyone."

  4. Posted by Gross chick | June 19, 2014 at 2:32 PM

    Hey Shazar (fart fart fart) I'm that chick from last (fart fart fart) you were grinding on me and feeling my back fat (fart fart fart)! Then we started to French kiss (fart fart fart) and that chick you said was your boss saw (fart fart fart) and she puked (fart fart fart). You told me you loved my curves and the way I smell (fart fart fart). Call me sometime (fart fart farrrrrrrrrrt)

  5. Posted by Borf | June 19, 2014 at 2:38 PM

    borf……boRF………….BORF!!!

  6. Posted by Mildly Interested | June 19, 2014 at 3:32 PM

    Where is Deeb now? Is he making it rain for some other firm?

  7. Posted by Guest | June 19, 2014 at 3:47 PM

    Goldman took 4.75mm in hush money from him to keep it sealed.

  8. Posted by SEC bot | June 19, 2014 at 3:48 PM

    He short squeezed to make his millions? Go on……

  9. Posted by Guest | June 19, 2014 at 3:50 PM

    Why did his mom's house burn down?

  10. Posted by guest | June 19, 2014 at 3:52 PM

    per the bberg article, he's at a hedge fund.

  11. Posted by guest | June 19, 2014 at 3:52 PM

    take a lap.

  12. Posted by Guest | June 19, 2014 at 4:16 PM

    I'd tell people my mom's house burned down if she still lived with me

  13. Posted by guest | June 19, 2014 at 4:20 PM

    tough but fair.

  14. Posted by Guest Guest | June 19, 2014 at 7:46 PM

    …think I would prefer the fat chick ( see above)….bit more weight to her story than his!…BUT, NO, absolutely NO bonus.
    Guest

  15. Posted by Devils Pie | June 20, 2014 at 2:42 AM

    Government Motors

  16. Posted by Kenny Powders | June 20, 2014 at 1:50 PM

    I got my pitch back!