The Elect’s new executive compensation structure—which does away with a long-term incentive program rather unpopular among proxy advisers and Goldman shareholders—means Lloyd Blankfein had to make due with less last year. Twenty-seven percent less. But it’s not the pay cut itself that hurts, or having to live on a paltry $22 million after having gotten used to more like $30 million. It’s this:
Blankfein becomes the third-highest paid CEO of the six largest U.S. banks. JPMorgan Chase & Co.’s Jamie Dimon received $28 million; Morgan Stanley’s James Gorman $22.5 million; Bank of America Corp. Brian T. Moynihan $20 million; and Citigroup Inc.’s Mike Corbat $15.5 million.
Goldman Sachs compensation committee, ask yourselves: Is Lloyd Blankfein really only 10% better than Brian Moynihan?
Lloyd’s former number two, National Economic Council Director Gary Cohn, was adjudged by the same to be exactly as valuable as BriMoy, getting $20 million for his 10-plus months’ work in 2016, plus $12.1 million they had invested in Goldman hedge and p.e. funds. But that’s not all, for not only is Cohn in the process of liquidating some $200 million in Goldman shares, he’s also decided it’s best not to retain his stake in the Industrial and Commercial Bank of China, possibly thanks to a suggestion from Anthony Scaramucci.
The stock that Mr. Cohn is selling is in the Industrial and Commercial Bank of China, which with nearly $3.5 trillion in assets is the biggest on the planet, and it would be valued at about $16 million based on Thursday’s trading, according to details of his holdings in a set of documents issued by the Office of Government Ethics.
The Chinese bank position appears to be the largest stock, private equity or hedge fund holding — apart from his shares in Goldman Sachs, where he was president — that Mr. Cohn will have to sell because of his new job….
Richard W. Painter, who served as an ethics lawyer in the administration of President George W. Bush, said the sale of the Chinese bank shares made sense, given China’s importance on the global economic stage.