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Guy Who Worked At Goldman Sachs Before Tom Wolfe Coined 'Masters of the Universe' Thinks Current MOTUs Should Take Pay Cut

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If you read DealBreaker—hell, if read—you know that Goldman Sachs gave out $16 billion in bonuses last year. Blankfein got $54 million (in total comp: weak), traders got $100 million, secretaries $200,000. In general, they also passed out pretty large salaries, too. BFD, welcome to America, let’s all move on with our lives. One guy who isn’t is John Whitehead, former co-head of Goldman Sachs, one billion years ago. During an interview with Bloomberg News, Whitehead, who left his post at 85 Broad in 1984, said that he is “appalled at the salaries,” and called Blankfein’s 2006 paycheck “an outrage.”
Whitehead, 85, noted that in his day, partners on Wall Street never made more than $120,000 (related: when my great-grandfather was 8, frankfurters only cost a nickel). The octogenarian also warned (hoped) that today’s “high fliers are going to fall flat…and their excessive pay should be cut back sharply, even if it means losing some of them.” Besides Blankfein, Whitehead sees competition by hedge funds as the source of the epidemic. He (likely) snarled, “[It] is very tempting to a Goldman Sachs partner who's in that part of the business, to go off on his own, as many have, and they've all done very well, much better than they would have done even at Goldman Sachs…let them see what happens when the hedge-fund bubble, as I see it, ends.” Great, the guy who worked on Wall Street before some of us were even a fetus has chimed in to make sense of it (the outrages) all. Related: in 2006, Goldman executives—by percentage, took a pay cut. Their compensation represented 43% of revenue, versus 47% in 2005, and was the lowest it’s been since the bank went public in 1999.
Former Goldman Chief Rips Wall St. Mega-Payouts [NYP]